Gold prices continued their record rise today, holding above the key $3,500 level amid growing investor confidence that the Federal Reserve (the U.S. central bank) will cut interest rates in September.

Spot gold rose about 0.2% to reach $3,540.64 per ounce by 00:54 GMT. December gold futures increased 0.4% to $3,607.60.

Traders currently expect with a 92% probability that the U.S. central bank will cut interest rates by 25 basis points on September 17, according to the CME FedWatch tool.

Gold, which yields no income, typically rallies in a low interest rate environment.

The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 1.32% to 990.56 tonnes on Tuesday, the highest level since August 2022.

U.S. President Donald Trump said on Tuesday that Washington needs a “very serious” interest rate cut.

Among other precious metals, spot silver fell 0.2% to $40.81 per ounce. Platinum rose 0.6% to $1,412.30, and palladium increased 1% to $1,145.69.