Gold hit a record high of $3,649 as traders expect the Fed to cut rates next week

Gold exploded to a new record high of $3,649 per ounce on Monday after fresh U.S. job numbers pointed straight at a likely interest rate cut from the Federal Reserve next week.

The enthusiasm pushed spot gold up by 1.3% to $3,631.66 just before 10 a.m. Eastern, while December futures rose 0.5% to $3,670.80.

Peter Grant, who serves as vice president and senior metals strategist at Zaner Metals, said the metal might keep going.

“Continued labor market softness and expectations of ongoing Fed rate cuts into early 2026 could provide sustained support for bullion,” he said, adding that gold could test the $3,700 to $3,730 range in the near future. Every dip, Peter said, could just bring in more buying.

China extends gold buying as Bitcoin holds under $115K

So far this year, gold has already surged 38%, after rising 27% throughout 2024, driven by a weaker U.S. dollar, aggressive buying from central banks, and global political tension. China’s central bank just made its 10th consecutive monthly gold purchase in August, adding even more fuel to the run.

Meanwhile, Bitcoin hasn’t moved an inch. The coin has been stuck below $115,000 for weeks, showing no clear breakout while gold eats up all the attention.

Its 25 Delta Skew (1 Month) is rising, which reflects more demand for put options, a tool typically used by institutions to hedge downside as they increase their crypto exposure through ETFs and DATs. That means institutions are playing it safe, even as they enter the space.

On the equity side, Goldman Sachs has listed gold mining stocks among its top recommendations heading into the last quarter of 2025. Analysts, led by David Kostin, said they expect gold to jump 14% more by 2026, driven by steady central bank and ETF demand. “Gold mining stocks should rally alongside the underlying commodity,” David’s team said in a note sent out on Friday.

The stock gains are already real. Dakota Gold, Anglogold Ashanti, and Newmont have all doubled in price this year. SSR Mining has tripled, while Perpetua Resources is up 75% and Royal Gold has gained 41%.

Goldman also pointed to two more trades. First, alternative asset managers still haven’t recovered their post-election highs under President Donald Trump, even with better conditions in capital markets. Second, firms sitting on piles of floating-rate debt could benefit as soon as the Fed hits the brakes on rates.

Lastly, the bank expects the S&P 500 to rise 2% by year-end and another 6% by mid-2026, if the Fed follows through on those cuts.

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