Gold prices advanced in Asian trade on Wednesday, staying just below record highs hit in the prior session. Strong expectations of a Federal Reserve rate cut next week fueled fresh safe-haven demand.
As of 02:17 ET (06:17 GMT), spot gold rose 0.5% to $3,646.14 per ounce, after touching a record peak of $3,674.09/oz on Tuesday. Gold futures for December were steady at $3,684.60/oz, following a surge above $3,700 in the previous session.
So far in 2025, gold has gained nearly 40%, driven by investor hedging against Donald Trump’s trade policies and strong central bank demand.
Fed cut bets strengthen after U.S. jobs data
Recent labor statistics showed the U.S. economy created 911,000 fewer jobs than previously estimated over the past year. The revision highlighted a cooling labor market and reinforced expectations of a 25-basis-point Fed rate cut, with some chance of a larger 50-basis-point move.
Lower interest rates typically support gold and other precious metals by reducing the attractiveness of yield-bearing bonds. Analysts at ING noted that monetary policy expectations are now the main driver for gold’s outlook.
Meanwhile, ANZ raised its year-end gold forecast to $3,800/oz, up from $3,600, and expects prices to peak near $4,000 by June 2026. The bank cited macroeconomic challenges, tariffs, and sanctions as key factors pushing investors toward gold.
Silver and metals markets also firm
Other precious metals also gained. Platinum futures rose 0.8% to $1,387.60/oz, while silver futures jumped nearly 1% to $41.725/oz, hovering near a 14-year high last seen in 2011. Analysts said investors are increasingly using silver as a way to expand their exposure to gold.
Copper markets also saw modest gains. LME copper futures rose 0.3% to $9,960.50 a ton, while U.S. copper futures climbed 0.3% to $4.59 a pound.
In Asia, fresh data from China showed continued deflationary pressures. August consumer prices fell more than expected, while producer prices contracted for the 35th consecutive month, underlining persistent weakness in the world’s second-largest economy.
