Gold Hits Fresh Record, Nears $4,200 as Fed Cut Bets and Trade Tensions Boost Demand
Gold prices surged to a new record high in Asian trading on Wednesday, extending their rally for a third consecutive session. Strong safe-haven demand continued as investors bet on upcoming U.S. interest rate cuts and reacted to rising U.S.–China trade tensions.
Gold Rally Extends for Eighth Straight Week
Spot gold climbed 1.1% to $4,186.84 per ounce as of 02:05 ET (06:05 GMT), after hitting an all-time peak of $4,193.60 earlier in the day. U.S. December gold futures rose 1% to $4,203.27.
The precious metal has now logged eight consecutive weeks of gains and is on track for another weekly advance if momentum holds through the end of the week.
Fed Easing Expectations Strengthen Bullion
The rally accelerated after Federal Reserve Chair Jerome Powell delivered remarks on Tuesday that markets interpreted as dovish. Powell noted that while the U.S. economy remains resilient, signs of a softer labor market are emerging.
He emphasized that there is “no risk-free path” for policy decisions, adding that the Fed would make rate decisions on a meeting-by-meeting basis.
These comments reinforced expectations for rate cuts in October and December, driving U.S. Treasury yields lower and weakening the dollar — both of which support non-yielding assets like gold.
Trade Tensions Add to Safe-Haven Appeal
Rising U.S.–China trade tensions added further fuel to gold’s rally. President Donald Trump recently suggested ending certain trade links with China, including cooking oil imports, in response to Beijing’s reduced soybean purchases.
Both countries have also introduced new port fees on shipping companies, deepening their tariff standoff and adding to global economic uncertainty.
According to ING analysts, “Gold and silver are among the best-performing commodities of 2025, up over 55% and 80% year-to-date, supported by the Fed’s policy easing, central bank buying, and ongoing geopolitical tensions.”
Broader Metal Markets Also Rise
Other precious and industrial metals climbed alongside gold as the dollar weakened.
- Silver gained 1.4% to $52.12 per ounce, after touching a record $53.60 earlier this week.
- Platinum futures advanced 1.4% to $1,687.20 per ounce.
- Copper prices rose across major markets — LME copper added 0.7% to $10,667.50 per ton, while U.S. copper futures gained 0.8% to $5.04 per pound.
China’s Inflation Data Points to Deflation Risks
Fresh data showed China’s consumer prices fell 0.3% year-on-year in September, following a 0.4% drop in August. Producer prices also declined 2.3%, easing slightly from the 2.9% fall in the previous month.
The figures highlight ongoing deflationary pressures in the world’s second-largest economy, raising expectations that Beijing will roll out new policy support in the coming months to stabilize growth.
