Gold has surged to a record high, exceeding US$3505. The rise is supported by projections for lower short-term interest rates.<\/p>\n
UBS maintains its gold forecast at US$3700. Meanwhile, ANZ advises attention to the impending jobs report for market insights.<\/p>\n
With gold now above a record US$3505, we see this is primarily driven by strong expectations that central banks will soon lower short-term interest rates. This environment makes holding non-yielding assets like gold more appealing. This sentiment creates a powerful tailwind for prices.<\/p>\n
Our view is supported by recent economic data from August 2025, which showed Core CPI cooling to a 2.1% year-over-year rate. The futures market is now pricing in an 85% probability of a rate cut at the next Fed meeting. This solidifies the fundamental case for owning gold.<\/p>\n
For traders, we believe buying call options is a clear way to express a bullish view while defining risk. With some major banks projecting targets as high as US$3700, call options provide leveraged exposure to that potential upside. This allows for participation in the ongoing trend.<\/p>\n
We remember how resilient gold was during the aggressive rate-hiking cycle of 2023, where it established a strong floor above the US$1900 level. Seeing it perform well in a high-rate environment gives us confidence in its potential now that the policy direction is reversing. The path of least resistance now appears to be upward.<\/p>\n
However, we must watch this week’s jobs report very closely as it is a significant short-term risk. A much stronger-than-expected employment number could delay the anticipated rate cuts and trigger a rapid price correction. Buying near-term put options could be a prudent hedge to protect existing long positions against this possibility.<\/p>\n
Implied volatility in gold options has risen to a six-month high ahead of this key data release. This makes selling premium an attractive strategy for those who believe the price may stall. A covered call strategy against a long futures position could generate income while waiting for the next major move.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold hits record US$3505, driven by interest rate forecasts; UBS eyes $3700, ANZ watches jobs data.<\/p>\n","protected":false},"author":62,"featured_media":16981,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-29988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t