Gold Nears $4,400 as Fed Rate Cut Bets and Trade Tensions Fuel Rally
Gold prices surged to fresh record highs in Asian trading on Friday, approaching the $4,400 per ounce level, as growing expectations of a Federal Reserve rate cut and renewed U.S.-China tariff tensions boosted demand for safe-haven assets.
Gold Extends Record-Breaking Rally
Spot gold climbed 0.9% to $4,362.63 per ounce by 01:49 ET (05:49 GMT), after briefly hitting a new all-time high of $4,379.29 earlier in the session.
U.S. gold futures for December delivery rose 1.7% to $4,376.91.
The metal has now gained nearly 10% this week, marking its ninth consecutive weekly advance and extending its record-setting rally for the fifth straight session.
Fed Rate Cut Expectations Strengthen
Markets are increasingly pricing in a rate cut by the Federal Reserve in October, as recent economic data indicates cooling inflation and slower growth.
Earlier this week, Fed Chair Jerome Powell adopted a more dovish tone, citing downside risks in the labor market and reaffirming that the Fed will stay data-dependent and proceed “meeting by meeting.”
Support for monetary easing is also growing within the central bank. Governor Christopher Waller voiced support for a 25-basis-point cut in October, while new Fed Governor Stephen Miran advocated for a more aggressive easing cycle.
Central Bank Demand and Geopolitical Support
Gold’s momentum was further supported by robust central bank buying, ETF inflows, and rising Asian demand, particularly from India’s festival season purchases.
The broader safe-haven rally also gained traction after the U.S. threatened 100% tariffs on select Chinese imports, prompting Beijing to vow retaliation. The renewed U.S.-China trade conflict sparked investor fears of deeper economic fallout, driving capital toward gold.
In geopolitics, President Donald Trump and Russian President Vladimir Putin agreed on Thursday to hold another summit to discuss the war in Ukraine, further elevating geopolitical uncertainty.
Other Metals Decline Despite Weak Dollar
Other precious and industrial metals slipped even as the U.S. dollar remained weak.
Silver futures eased 0.2% to $53.17 per ounce, while platinum dropped 1.2% to $1,732.60.
On the London Metal Exchange, benchmark copper slid 1% to $10,545.20 per ton, and U.S. copper futures declined 0.7% to $4.95 per pound.
