Gold Prices Hit Record Highs Above $3,750 as Powell Speech Looms
Gold prices climbed to fresh record highs in Asian trading on Tuesday, lifted by strong haven demand. Investors turned cautious after recent comments from Federal Reserve officials suggested uncertainty over the pace of future interest rate cuts.
Markets Await Powell and Key US Data
Traders are now focused on a busy week for U.S. economic data. Fed Chair Jerome Powell is scheduled to speak later today, while PMI data for September will also be released. Later in the week, markets await the Fed’s preferred inflation gauge, the core PCE price index, as well as final GDP figures for the second quarter.
Political headlines also added to caution. U.S. President Donald Trump announced steep fees on a popular work visa and made disputed remarks on vaccines, autism, and painkillers, which shook pharmaceutical stocks.
Gold Breaks New Records
Safe-haven demand surged as Asian equities retreated, with Chinese stocks falling after a strong rally in recent weeks. Spot gold hit an all-time high of $3,759.18 per ounce, while gold futures peaked at $3,794.82/oz.
Other metals saw more muted moves. Platinum rose 0.3% to $1,421.05/oz, and silver edged up 0.2% to $44.31/oz. By contrast, copper futures slipped, with LME copper down 0.3% to $9,975.05 a ton and COMEX copper down 0.5% to $4.6275 a pound.
Fed Officials Signal Mixed Views on Rates
Several Fed officials expressed caution on further rate cuts. Atlanta Fed President Raphael Bostic said he did not favor a cut in October, citing persistent inflation. Cleveland Fed President Beth Hammack echoed similar concerns.
By contrast, new Fed board member Stephen Miran continued to call for deeper cuts, aligning with Trump’s view. He dissented at last week’s Fed meeting, favoring a 50 bps cut over the 25 bps that was delivered.
Powell had previously highlighted weakness in the labor market as the main reason for easing, but he also warned inflation remains sticky, particularly under pressure from tariffs. He will speak at 12:35 ET (16:35 GMT).
