Gold prices remained steady in Asian trading on Wednesday, hovering close to recent record highs following comments from U.S. Federal Reserve Chair Jerome Powell, which raised concerns about economic growth, inflation, and interest rate policy.
Investor interest in safe-haven assets such as gold and other precious metals increased, while ongoing weakness in the dollar continued to support demand for metals. Caution was further heightened by upcoming key economic releases and disappointing U.S. purchasing managers index (PMI) data.
Spot gold inched up 0.3% to $3,776.20 an ounce, while gold futures slipped 0.2% to $3,808.50 an ounce as of 01:39 ET (05:39 GMT).
Powell Signals Economic Risks and Rate Uncertainty
Spot gold reached a record $3,791.1 per ounce on Tuesday and held near that level after a strong rally over the past week.
Fed Chair Powell on Tuesday highlighted growing uncertainty over the U.S. economic outlook, noting that there is no “risk-free path” for cutting interest rates while attempting to control inflation and support jobs.
He also acknowledged that the labor market had weakened sharply in recent months, while inflation remained persistent, complicating the central bank’s efforts to ease monetary policy.
Powell’s remarks came just a week after the Fed reduced rates by 25 basis points, as anticipated, and indicated further potential easing. Gold prices had surged following the rate cut, as lower yields make non-interest-bearing assets like metals more appealing.
Markets are largely betting on at least two more 25-basis-point cuts this year, according to CME FedWatch data. Additional signs of U.S. economic softness could prompt further monetary easing, with the dollar hovering near three-year lows.
September PMI readings showed that both manufacturing and services activity expanded less than expected, as businesses grappled with higher trade tariffs, sticky inflation, and slow consumer spending.
Other Metals See Gains
Other precious metals also advanced Wednesday, with spot platinum up 0.6% at $1,485.41 per ounce and spot silver rising 0.5% to $44.2495 per ounce.
Among industrial metals, London Metal Exchange copper futures edged up 0.1% to $9,999.95 per ton, while COMEX copper futures rose slightly to $4.6430 per pound.
Upcoming U.S. Data in Focus
Investors are awaiting more U.S. economic data, including the final reading for second-quarter GDP growth on Thursday, expected to confirm stronger-than-anticipated growth.
Attention will also be on the PCE price index—Fed Chair Powell’s preferred inflation gauge—due Friday. Analysts expect inflation to remain sticky in August, which could intensify uncertainty over the Fed’s interest rate plans. Several Fed officials are also scheduled to speak in the coming days, adding further potential market-moving commentary.
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