1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
After hitting a record high earlier this year, the gold market had entered a months-long consolidation phase that left many investors disappointed. However, the situation suddenly reversed this week. On Tuesday, driven by prospects of U.S. interest rate cuts and growing concerns over the Federal Reserve’s future independence, gold prices broke through the $3,500 per ounce barrier and reached a new historic high.
Spot gold set a record of $3,530 per ounce, surpassing the previous peak of $3,500.05 from late April. Gold futures on the COMEX also hit a new high, trading at $3,590.40 per ounce. Over the past three years, gold has more than doubled in value, with gains exceeding 30% in 2025 alone. The latest rally has been fueled by expectations that the Federal Reserve will cut interest rates for the first time in nine months—after Fed Chair Jerome Powell cautiously opened the door to monetary easing.
In an interview on August 28, Michele Schneider, Chief Strategist at MarketGauge.com, stated that there is no telling how high gold prices can go. From a technical perspective, she noted, the longer the consolidation phase persists, the stronger the eventual breakout is likely to be. A classic and widely accepted logic in financial markets is that when asset prices stop falling, they will eventually rise—a dynamic that appears to be playing out in gold’s current trajectory.
Gold’s recent upward move is closely tied to the Federal Reserve. The central bank’s shift away from a singular focus on inflation has heightened concerns about the U.S. dollar’s purchasing power. Global investors and sovereign nations appear to be losing confidence in the U.S. dollar, the Federal Reserve, and the U.S. government—turning instead to gold and revitalizing its role as a global currency.
In a research note, Joni Teves, Strategist at UBS Group, indicated that they expect gold to continue reaching new highs in the coming quarters. Suki Cooper, Analyst at Standard Chartered Bank, shared a similar view, stating that further record prices are in the offing. She forecast that gold would average $3,500 per ounce in Q3 2025 and rise to $3,700 per ounce in Q4.
Recently, repeated attacks by President Donald Trump against the Federal Reserve have threatened its independence and amplified market uncertainty. Investors are closely watching a landmark legal decision on whether Trump can lawfully dismiss Fed Governor Lisa Cook. If deemed legal, the president could replace her with a dovish official. In response, Commerzbank commented, the accusations against Cook are a clear warning to other FOMC members to yield to government pressure for substantial rate cuts… This makes gold investments more attractive in such an environment.
Market attention has now turned to the U.S. nonfarm payrolls data due this Friday, which will provide clues about the extent of rate cuts in September. A weak jobs report could reignite discussions about a 50-basis-point rate cut at the September meeting. According to the CME FedWatch Tool, markets are currently pricing in a 90% probability of a 25-basis-point rate cut at the Fed’s September 17 meeting.
