Gold prices held steady in Asian trading on Wednesday, staying close to record highs. Comments from U.S. Federal Reserve Chair Jerome Powell raised caution over growth, inflation, and interest rates, boosting safe-haven demand.
Gold and other precious metals also gained support from a weaker U.S. dollar. At the same time, markets remained cautious ahead of key economic releases this week, following soft U.S. purchasing managers index (PMI) data.
Spot gold rose 0.3% to $3,776.20 an ounce, while gold futures dipped 0.2% to $3,808.50 by 01:39 ET (05:39 GMT). On Tuesday, spot gold touched a record high of $3,791.1/oz after a strong rally over the past week.
Powell warns of risks
Powell said on Tuesday evening that there was no “risk-free path” for lowering interest rates while keeping inflation under control and supporting jobs. He pointed out that the labor market has weakened in recent months but inflation remains sticky, complicating future rate cuts.
His comments came just one week after the Fed delivered a 25-basis-point rate cut and signaled more easing ahead. Gold prices jumped after that move, as lower rates typically make non-yielding assets such as precious metals more attractive.
Markets are still pricing in at least two more cuts this year, according to CME Fedwatch. More signs of U.S. economic weakness could encourage the Fed to ease further, especially as the dollar remains near a three-year low.
Economic data weighs on sentiment
September PMI data showed slower-than-expected growth in both manufacturing and services. Higher trade tariffs, sticky inflation, and weak consumer spending weighed on business activity.
Other precious metals also advanced on Wednesday. Spot platinum gained 0.6% to $1,485.41/oz, while spot silver rose 0.5% to $44.2495/oz. In industrial metals, London copper futures edged up 0.1% to $9,999.95 a ton, while COMEX copper futures climbed slightly to $4.6430 a pound.
Key U.S. data ahead
Traders now await more U.S. economic reports this week. A final reading of second-quarter GDP, due Thursday, is expected to confirm stronger-than-expected growth. On Friday, the Fed’s preferred inflation measure—the PCE price index—is due and likely to show sticky price pressures in August.
Several Fed officials are also scheduled to speak in the coming days, adding more potential drivers for gold prices and market sentiment.
