Gold prices edged higher in Asian trading on Wednesday, remaining just below the record peaks set in the previous session, amid mounting expectations that the Federal Reserve will lower interest rates next week.
As of 02:17 ET (06:17 GMT), spot gold was up 0.5% at $3,646.14 per ounce, following Tuesday’s all-time high of $3,674.09/oz. December gold futures were largely unchanged at $3,684.60/oz after briefly surpassing $3,700 in the prior session.
Year-to-date, gold has climbed nearly 40%, supported by safe-haven demand driven by President Donald Trump’s trade policies and strong central bank buying.
Fed Rate Cut Bets Strengthened by Jobs Revision
Recent U.S. labor data revealed that the economy added 911,000 fewer jobs over the past year than initially reported, signaling a slowdown in payroll growth and a cooling labor market. This reinforced expectations for a 25-basis-point Fed rate cut, with a smaller probability of a 50-basis-point reduction. Lower interest rates tend to lift gold and other metals by making yield-bearing bonds less attractive.
“Monetary policy expectations are now likely to become the primary driver for gold’s direction,” ING analysts commented in a recent note.
ANZ raised its year-end gold forecast to $3,800 per ounce from $3,600, projecting that bullion could reach around $4,000 by June 2026. “Macroeconomic challenges and tension arising from tariffs and sanctions are encouraging investors to hedge risks by allocating more funds to gold,” ANZ analysts added.
Other Metals Show Strength; China CPI in Focus
Precious metals also gained on Wednesday. Platinum futures rose 0.8% to $1,387.60/oz, while silver futures jumped nearly 1% to $41.725/oz, staying close to last week’s highest level since August 2011.
“Silver is also gaining traction, as investors increase their exposure to gold through silver investments,” ANZ analysts noted.
Copper markets were firmer as well, with London Metal Exchange benchmark copper up 0.3% to $9,960.50 per ton, and U.S. copper futures up 0.3% to $4.59 per pound.
Meanwhile, Chinese data highlighted ongoing deflationary pressures in the world’s second-largest economy. Consumer prices fell more than expected in August, as government stimulus failed to counter entrenched deflation, while producer prices declined for the 35th consecutive month.
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