Gold prices surged to a fresh record high in Asian trading on Wednesday, marking the third consecutive session of record peaks. The rally came as expectations of imminent U.S. interest rate cuts and renewed U.S.-China trade tensions fueled strong safe-haven demand among global investors.
Spot gold traded 1.1% higher at $4,186.84 per ounce as of 02:05 ET (06:05 GMT), after reaching a new all-time high of $4,193.6/oz earlier in the session. U.S. December Gold Futures rose 1% to $4,203.27 per ounce. The yellow metal has now logged eight straight weeks of gains, underscoring investor caution amid heightened geopolitical and economic uncertainty.
Fed Easing Bets Boost Bullion
The latest rally gained momentum after Federal Reserve Chair Jerome Powell delivered remarks that investors interpreted as dovish. Powell acknowledged that while the U.S. economy remains relatively firm, a softer labor market is beginning to emerge. He emphasized that there is “no risk-free path” for monetary policy and reiterated that decisions will continue to be made “meeting by meeting.”
Markets took Powell’s comments as a sign that the Federal Reserve could cut rates as early as October and again in December. These expectations drove U.S. Treasury yields lower and weakened the U.S. dollar, both of which tend to support non-yielding assets like gold.
Analysts noted that the Fed’s cautious tone has strengthened gold’s safe-haven appeal. As inflation trends remain uncertain and the economic outlook softens, investors are increasingly turning to bullion as a hedge against both monetary and geopolitical risks.
US-China Trade Tensions Add Pressure
The surge in gold prices was also reinforced by escalating U.S.-China trade tensions. President Donald Trump recently suggested ending certain trade ties with China, including restrictions on cooking oil imports, after Beijing reduced purchases of U.S. soybeans.
In retaliation, both nations imposed reciprocal port fees on ocean shipping, further intensifying the tariff standoff. The renewed strain between the world’s two largest economies has revived fears of disrupted global trade and slowed growth — conditions that historically drive investors toward safe-haven assets such as gold.
Analysts from ING commented, “Gold and silver are two of the best-performing commodities this year, with prices up more than 55% and 80% year-to-date, respectively. This performance has been supported by Fed policy easing, central bank purchases, and ongoing geopolitical tensions.”
Other Metals Also Rally
The positive momentum extended to other precious and industrial metals, buoyed by the weaker dollar and expectations of policy support in key markets.
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Silver climbed 1.4% to $52.12 per ounce, following a record high of $53.6/oz in the previous session.
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Platinum Futures advanced 1.4% to $1,687.20/oz.
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London Copper Futures rose 0.7% to $10,667.50 per ton, while U.S. Copper Futures gained 0.8% to $5.04 per pound.
The rally across metals reflects both safe-haven buying and speculative optimism that fresh economic stimulus, particularly from China, could support industrial demand.
China Inflation Data in Focus
Recent Chinese inflation data provided further insight into market sentiment. Consumer prices fell 0.3% year-on-year in September, easing from a 0.4% decline in August. Producer prices also dropped 2.3% annually, compared with a 2.9% decline the previous month.
These figures indicate ongoing deflationary pressures in the world’s second-largest economy, raising expectations that Beijing may announce new stimulus measures to boost domestic demand and manufacturing output. Such steps could, in turn, bolster global consumption of industrial metals like copper and platinum.
Outlook
Market analysts believe gold’s record-breaking rally is driven by a trifecta of factors — dovish Federal Reserve policy signals, intensifying U.S.-China trade tensions, and heightened global risk aversion. With investors anticipating possible rate cuts and seeking protection against economic volatility, the precious metals market appears set for continued strength.
If the Fed proceeds with policy easing and China introduces additional fiscal support, analysts expect gold and silver to extend their upward trajectory through the coming months. Industrial metals could also benefit from improving global liquidity and infrastructure spending.
For now, traders and institutional investors are closely monitoring macroeconomic data, central bank commentary, and geopolitical developments, which will likely determine the next major moves in gold and other commodities.
