Gold’s momentum this year has swelled into something notable. Spot gold has broken free from its long‑held resistance around $3,600 per ounce, breaching that threshold for the first time. Weak U.S. employment data, specifically, a tepid non‑farm payrolls number of just 22,000 jobs added in August and a rough 4.3% unemployment rate, has emboldened expectations of a Federal Reserve interest‑rate cut as soon as mid‑September. The market leans heavily into that scenario, with probabilities for a 25 basis‑point cut now approaching the 90% mark. That has lowered the opportunity cost of owning non‑yielding bullion and eroded the dollar’s purchasing power, that classic double accelerator for gold.
This global rally builds on a steady foundation. Gold has already risen by approximately 37% year‑to‑date, compounding a 27% gain in 2024. Central bank buying remains robust—an especially telling sign that gold is being accumulated not as a fleeting hedge but as long‑term ballast. At the same time, geopolitical unease is casting a longer shadow, reinforcing gold’s role as a stabilising asset rather than just a speculative one.
This momentum is not just reactive, it carries forward appeal. UBS analysts see room for prices to stretch toward $3,700 later in the year, while others note that growing doubts over policy independence, including political interference in the Fed, are magnifying gold’s attractiveness. As long as those concerns linger, gold may no longer be simply optional jewellery or a hedge, but central to portfolios anchored in conviction.
Cora Gold Ltd (LON:CORA), together with its subsidiaries, explores for and develops mineral projects in West Africa. The company primarily explores for gold deposits. Its flagship project is the Sanankoro Gold project located in the Yanfolila Gold Belt, Southern Mali.
