Gold Extends Record Rally Above $4,200 as Fed Cut Bets and US-China Tensions Grow
Gold prices hit new record highs in Asia on Thursday, rising for a fourth consecutive session, as growing expectations of U.S. Federal Reserve rate cuts and renewed U.S.-China trade tensions fueled demand for the safe-haven metal.
Spot gold climbed 0.7% to $4,237.87 per ounce by 00:25 ET (04:25 GMT) after touching a fresh high of $4,241.99 earlier in the session. U.S. Gold Futures rose 1.2% to $4,252.59, pushing the metal’s weekly gains above 5%, extending its rally that began in early October.
Fed Rate Cut Bets Strengthen Gold’s Momentum
Investors are now pricing in a near-certain 25 basis-point rate cut by the Federal Reserve in October, followed by another in December, after Chair Jerome Powell signaled a more dovish tone this week.
The Fed’s Beige Book, released Wednesday, showed that U.S. economic activity remained mostly flat in recent weeks, with slower consumer demand and early signs of labor market cooling. These developments reinforced expectations of policy easing, lifting gold as bond yields retreated.
Gold’s rally was further supported by rising U.S.-China tensions, with Washington threatening new tariffs on Chinese imports, while Beijing tightened export controls on rare earth materials. The renewed friction triggered safe-haven flows, as investors sought protection from geopolitical uncertainty.
Additionally, the U.S. government shutdown, now entering its third week, delayed major economic data releases and raised concerns over fiscal instability in Washington, adding more upward pressure on gold.
Analysts See Gold Reaching $4,400 by Year-End
Analysts at ANZ Bank expect the gold rally to continue amid global economic uncertainty and ongoing Fed rate cuts.
“While comparisons to the 1980s price peak are common, this surge is driven by stronger structural factors,” ANZ analysts said, predicting gold could hit $4,400 by end-2025 and peak near $4,600 by mid-2026 before stabilizing later that year.
Silver, Platinum, and Copper Steady
Other precious and industrial metals traded within narrow ranges despite a weaker U.S. dollar.
Silver rose 0.3% to $53.13 per ounce, just below its record high of $53.60, while Silver Futures gained over 1%. Analysts noted that investors who missed the gold rally are now turning to silver for similar exposure.
Platinum Futures held steady at $1,698.00/oz, while Copper Futures on the London Metal Exchange were flat at $10,616.20 per ton. In the U.S., copper rose 0.2% to $4.98 per pound, reflecting mild industrial demand.
