Gold hits record high but silver poised to outperform amid institutional interest

[https://invezz.com/wp-content/uploads/2025/06/Blocks-of-silver.png] Gold and silver prices have risen sharply on the first day of September as rate cut hopes fuelled investors’ sentiment on Monday. The December gold contract on COMEX hit a record high of $3,556.87 an ounce. The December silver contract on COMEX hit a more than 14-year high of $41.638 an ounce. Traders anticipate an interest rate cut by the US Federal Reserve (Fed) this month, despite persistent signs of inflation. “The outlook drags the US Dollar (USD) back closer to the August monthly swing high and acts as a tailwind for the non-yielding yellow metal,” Haresh Menghani, editor at FXStreet, said in a report. [https://invezz.com/wp-content/uploads/2025/09/image-1-1024x509.png]Source: FXStreet ECONOMIC DATA In July, the annual Personal Consumption Expenditures (PCE) Price Index, as reported by the US Bureau of Economic Analysis on Friday, remained unchanged at 2.6%. Additionally, the core PCE Price Index, excluding the volatile food and energy sectors, saw a modest increase to 2.9% in the reported month, aligning with analysts’ expectations and up from 2.8% in June. According to the CME FedWatch Tool, traders are now predicting an 87%…