Dollar Slides to Multi-Week Lows
The U.S. dollar fell to a five-week low on September 2, 2025, as traders increasingly priced in a potential 50 basis-point rate cut by the Federal Reserve later this month. The dollar index, which tracks the greenback against six major currencies, declined further as investors adjusted expectations for a looser monetary policy stance.
Gold Surges to Record High
In contrast, gold prices soared to an all-time high of $3,503.32 per ounce, reflecting a flight to safe-haven assets amid concerns over central bank independence and geopolitical uncertainty. Market analysts suggest that gold’s rally is being fueled by both expectations of lower U.S. interest rates and lingering global risks, which continue to drive demand for hard assets.
Asian Markets Gain on AI Optimism
Across Asia, equity markets registered modest gains, with tech-heavy indices leading the charge. Investors remain optimistic about artificial intelligence-driven growth, particularly in semiconductor and cloud computing sectors. This momentum helped offset concerns about weakening global currencies and the broader macroeconomic backdrop.
Political Clouds Over the Federal Reserve
While markets welcomed the prospect of cheaper liquidity, political uncertainty cast a shadow over the Federal Reserve’s decision-making process. Recent criticisms of the Fed’s independence have raised questions about whether policy shifts are being influenced by external pressure rather than purely economic indicators.
What Comes Next?
Looking ahead, traders will closely monitor upcoming U.S. economic data, particularly inflation and jobs reports, to gauge the Fed’s next move. If a half-point rate cut materializes, the dollar may remain under pressure while gold could see another leg higher.
