New York, 3 September (Udaipur Kiran): Gold prices surged to historic highs on Tuesday, crossing $3,500 per troy ounce, as investors bet on a Federal Reserve interest rate cut and continued robust buying from foreign central banks. Gold futures climbed to an intraday high of $3,578, while spot gold traded above $3,516—both setting new records.

According to Bloomberg data cited by Crescat Capital macro strategist Tavi Costa, global central banks now hold more gold than US treasuries for the first time since 1996. “This is likely the beginning of one of the most significant global rebalancings we’ve experienced in recent history,” Costa said on social media platform X.

A recent World Gold Council survey found that most central banks expect global gold reserves to rise further in the next 12 months. This bullish outlook is also being driven by widespread concerns about inflation and expectations that the Fed will soon lower interest rates. Lower interest rates typically boost demand for gold, as it becomes more attractive compared to other interest-bearing assets.

Market participants are now pricing in a roughly 90% chance of a 25 basis point cut by the Federal Reserve at its September meeting, with this week’s US jobs report being closely watched. A softer labour report could increase expectations of a larger rate cut.

“Gold has become a barometer of market unease and uncertainty across inflation, monetary policy and employment,” said Ahmad Assiri, research strategist at Pepperstone.

Gold futures have jumped 36% so far this year—far outpacing the S&P 500’s 8% and Bitcoin’s 19% gains in the same period. The precious metal also rose more than 3.5% in August, marking its eighth consecutive monthly gain, an unprecedented streak since 1968, according to JC Parets of allstarcharts.com.

Analysts remain bullish, with UBS forecasting gold to reach $3,700 per ounce by June 2026, and Goldman Sachs reaffirming its target of $4,000 per ounce by mid-2026, supported by sustained central bank buying and ETF inflows.