Gold hits fresh record near $3,700 as Fed decision looms
Gold prices surged to new record highs in Asian trading on Tuesday, approaching $3,700 per ounce. The rally came as investors bet on a U.S. Federal Reserve interest rate cut this week, boosting demand for the precious metal.
Spot gold rose 0.1% to $3,681.20 per ounce by 01:42 ET (05:42 GMT), after touching an all-time high of $3,689.32 earlier in the session. U.S. gold futures for December held steady at $3,718.20. Bullion gained 1% in the previous session, surpassing last week’s records.
Market confidence in a 25-basis-point Fed rate cut at the September 16–17 meeting fueled the rally, while concerns about the central bank’s independence further supported safe-haven demand. A weaker U.S. dollar, near one-week lows, added to the bullish momentum.
Political developments also lifted gold’s appeal. The Senate confirmed Trump’s economic adviser Stephen Miran to the Fed Board of Governors, raising speculation that the central bank could face stronger political pressure. Meanwhile, an appeals court blocked Trump’s bid to remove Fed Governor Lisa Cook, ensuring she will likely attend this week’s policy meeting.
Other metals under pressure, copper retreats from 15-month peak
Silver futures were steady at $42.95 per ounce, while platinum fell 0.6% to $1,410.45. Copper, which recently touched a 15-month high, retreated 0.5% to $10,111.60 a ton on the London Metal Exchange. U.S. Comex copper futures slipped 0.7% to $4.69 a pound.
Markets also tracked the latest U.S.-China trade talks in Madrid. Negotiators reached a framework deal over TikTok’s U.S. ownership, with Presidents Donald Trump and Xi Jinping expected to finalize terms later this week. Hopes of easing trade tensions between the two largest economies could provide support for industrial metals in the near term.
