Gold surges near record high as Fed prepares rate cut

Gold was charging near a record high Wednesday, trading around $3,650 an ounce after US wholesale prices unexpectedly fell and investors piled into bets the Federal Reserve will slash interest rates next week.

The precious metal brushed an all-time peak of $3,674 earlier this week and has already soared 40% in 2025, trouncing stocks and other major assets.

Wednesday’s surge came after the Bureau of Labor Statistics reported that the producer price index dropped 0.1% in August, defying forecasts for a rise. 3

The surprise slide and recent weak jobs reports give the Fed cover to ease policy at its Sept. 17 meeting, experts predicted.

Traders now see a near-100% chance of a quarter-point cut and a growing shot of a half-point move, CME FedWatch data shows.

“Gold’s climb past $3,