Gold hit a new record high above $4,100 on Tuesday (October 14), boosted by expectations of an interest rate cut this month by the US Federal Reserve and investors fleeing for safety amid escalating trade tensions between Washington and Beijing.
Spot gold rose 0.9% to $4,145.85 per oz at 1:50 PM ET (17:50 GMT), after hitting a record high of $4,179.48 earlier in the session. US gold futures for December delivery rose 0.7% to close at $4,163.40.
The precious metal has surged about 57% this year, breaking through $4,100 for the first time on Monday. The rally has been driven by a combination of factors, including geopolitical uncertainty, expectations of a US interest rate cut, robust central bank buying, and strong ETF inflows.
Analysts at Bank of America and Societe Generale now expect gold to reach $5,000/oz by 2026.
"Elevated US-China trade tensions, the ongoing government shutdown, and expectations of further Fed policy easing are all supporting gold," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
US President Donald Trump's threat to impose 100% tariffs on Chinese goods, tit-for-tat port tariffs by the world's two largest economies, and the broader macro trend of dedollarization could push gold to $5,000/oz by the middle of next year, Grant added.
Trump is scheduled to meet with Chinese leader Xi Jinping in South Korea later this month, Treasury Secretary Scott Bessent said on Monday. Non-yielding gold tends to perform well in a low-interest-rate environment, and the market is expecting a 25 basis point rate cut at this month's Fed meeting, followed by a similar cut in December.
"Based on the data we have, it's safe to say that the employment and inflation outlook appears to have changed little since our September meeting four weeks ago," Fed Chairman Jerome Powell said in a speech at the National Association for Business Economics' annual meeting.
Spot silver, driven by the same factors that boosted gold and tight spot markets, reached a record high of $53.60/oz before weakening 0.9% to $51.86. Platinum weakened 0.3% to $1,640.76, and palladium rose 3.2% to $1,521.50. (alg)
Source: Reuters
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...