COMEX Gold futures smashed through the $3600 mark as a blistering rally continued for precious metals. Investors piled into safe havens on growing expectations of a Fed rate cut. Hints from Chair Powell have fuelled hopes of easing this month. Political drama is adding fuel to the rally, as Trump’s clash with the Fed and fresh tariff battles spark concerns over central bank independence and trade uncertainty. Budget worries and dollar diversification are further boosting demand for bullion. Gold rose around 4% in August, its best monthly performance since April, adding to bullish momentum. The metal soared further in first week of September amid subdued labor market trends, clocking near $3600 per ounce and ending around $3640 per ounce. As per the Gold Market Commentary report by the World Gold Council, Gold gained in all major currencies, despite a much weaker US dollar, and the positive momentum has carried on in early September. Gold ETF flows provided plenty of support, especially late in the month, posting USD 5.5 billion of inflows, dominated by North America with USD 4.1 billion, and Europe with USD 1.9 billion, while Asia and other regions saw outflows. The US dollar index fell well under 98 mark amid concerns over US payrolls trend. The US Labor Department said non-farm payroll employment gained by 22,000 jobs in August after climbing by an upwardly revised 79,000 jobs in July. However, the Labor Department said the unemployment rate rose by 4.3% in August from 4.2% in July. MCX Gold futures broke sharply higher amid firm global cues and approached Rs 107800 per 10 grams mark.
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