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Gold Continues Rally as Weaker US Dollar and Fed Rate Cut Bets Boost Demand
Monday, 1 September 2025 22:02 WIB | GOLD |GOLD
Gold (XAU/USD) started the week on a stronger note, extending its five-day rally to reach its highest level in more than four months, last seen on April 22. A generally weaker US dollar and strong expectations for a Federal Reserve (Fed) interest rate cut in September continued to support gold's momentum.

At the time of writing, XAU/USD was consolidating around $3,477 in the American session, after hitting an intraday high of $3,490 during Asian hours—just shy of its all-time peak of $3,500. Mild technical selling and stable US Treasury yields weighed on sentiment, while trading conditions remained thin with US markets closed for Labor Day.

Beyond monetary policy expectations, gold continued to attract safe-haven demand as uncertainty mounted over US trade policy and the Fed's independence. On Friday, a federal appeals court ruled that most of U.S. President Donald Trump's global tariffs were illegal, saying he had exceeded his authority under the International Emergency Economic Powers Act (IEEPA). This ruling, combined with geopolitical tensions and broader investor caution, kept gold well supported near record highs.
 
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