Gold is moving toward a record high, supported by two factors: expectations that the Fed will cut interest rates again this year and the escalation of US-China relations. Spot prices briefly reached a new peak of $4,179.70/oz and were last trading around $4,165/oz, after closing up 0.8% the previous session.

US Treasury yields fell to their lowest level in weeks after Fed Chairman Jerome Powell signaled a quarter-point rate cut this month. Lower yields make non-coupon gold relatively more attractive.

Silver also experienced a wild ride: it briefly broke a record above $53.54/oz before sharply rebounding. The primary cause was tight liquidity in London, which caused the benchmark price there to briefly surge above New York futures; the gap began to narrow, and the cost of borrowing silver fell, although both remained high.

Looking ahead, the market is wary of the outcome of Section 232 investigations into crucial minerals (including silver, platinum, and palladium), which could trigger new tariffs. So far this year, the four major precious metals have surged 58–80% thanks to large central bank purchases, ETF inflows, and a flight to safety stemming from US-China tensions, the spotlight on the Fed's independence, shutdown issues, and concerns about a ballooning deficit. (asd)

Source: Newsmaker.id