Gold surged to a fresh record high on Wednesday, consolidating gains above the key $3,500 level, on growing expectations of a Federal Reserve rate cut this month and lingering political and economic risks, APA reports, citing Reuters.
Spot gold was up 0.1% at $3,534.88 per ounce, as of 1006 GMT, after hitting an all-time high of $3,546.99 earlier in the session. U.S. gold futures for December delivery gained 0.3% to $3,602.80.
Adding to market uncertainty and potential trade tensions, U.S. President Donald Trump's administration said it will ask the Supreme Court for an expedited ruling on tariffs that a U.S. appeals court found to be illegal last week.
"The tariff issues and roadblock provided by the Supreme Court will be a critical test for Trump, (and) irrespective of the outcome, gold provides a welcome respite from market turbulence for investors," said independent analyst Ross Norman.
"Rate cuts are starting to look baked in but questions are now arising whether there will be further cuts. Lower rates would stimulate economic activity in the U.S. as well as further weaken the dollar ... providing a strong tailwind to gold," he added.
Trump has been exerting relentless pressure on the Fed to cut interest rates and publicly discussed firing Fed Chair Jerome Powell.
In a sharp escalation, Trump last month attempted to fire Fed Governor Lisa Cook, setting off a critical legal test over the Fed's ability to function without political interference.
Rate-cut expectations and worries over the Fed's independence have weighed on the U.S. dollar (.DXY), opens new tab, which is down more than 9% since the start of the year, making gold less expensive for overseas buyers.
Investors are pricing in a 92% chance of a 25-basis-point Fed rate cut at the end of the Fed's policy meeting on September 17, according to CME Group's FedWatch tool.
Non-yielding gold typically performs well in a low-interest-rate environment.
Analysts see spot gold in a $3,600-$3,900 range in the near to medium term, with potential to test the $4,000 level in 2026 if economic and geopolitical uncertainties persist.
Elsewhere, spot silver eased 0.2% to $40.81 per ounce, after hitting its highest point since September 2011. Platinum fell 0.3% to $1,401.28 and palladium rose 0.5% to $1,140.66.
***
09:06
Gold prices extended their record run on Wednesday, as persistent market uncertainty and growing investor confidence that the U.S. Federal Reserve will cut interest rates this month lifted demand for the safe-haven metal, APA reports, citing Reuters.
Spot gold was up 0.1% at $3,537.76 per ounce, as of 0448 GMT, after hitting an all-time of $3,546.99 earlier in the session. U.S. gold futures for December delivery gained 0.3% to $3,603.50.
Adding to market uncertainty and potential trade tensions, U.S. President Donald Trump's administration said it will ask the Supreme Court for an expedited ruling on tariffs that a U.S. appeals court found illegal last week.
"The Supreme Court decision has seemingly introducing a lot of uncertainty into the market because they could radically change what the macro landscape looks like if these decisions don't go the president's way," said Ilya Spivak, head of global macro at Tastylive.
"The attempt at compromising Fed independence to some extent, that's a very big deal as well. The bias for gold is very clearly higher, momentum here seems rather one-sided."
Trump has been exerting relentless pressure on the Fed to cut interest rates and publicly discussed firing Fed Chair Jerome Powell.
Upping this battle, Trump last month attempted to fire Fed Governor Lisa Cook, setting off a critical legal test over the Fed's ability to function without political interference.
U.S. rate futures are pricing in a 92% chance of a 25-basis-point Fed rate cut at the end of the two-day policy meeting on September 17, according to CME Group's FedWatch tool.
Non-yielding gold typically performs well in a low-interest-rate environment.
SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 1.32% to 990.56 tons on Tuesday, the highest since August 2022.
Investors are now looking forward to the U.S. non-farm payrolls data, due on Friday, to determine the size of the Fed's potential rate cut later this month.
Elsewhere, spot silver eased 0.4% to $40.74 per ounce, after hitting its highest point since September 2011 in the previous session. Platinum edged 0.1% lower to $1,401.59 and palladium rose 1.5% to $1,146.75.
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on TikTok
Follow us on Facebook
Follow us on X
