Gold prices surged to fresh all-time highs in Asian trading on Thursday, extending their winning streak to a fourth consecutive session. Rising expectations of U.S. Federal Reserve interest rate cuts, heightened U.S.-China trade tensions, and lingering political uncertainty drove investors toward the safe-haven asset.
Spot gold advanced 0.7% to $4,237.87 an ounce at 00:25 ET (04:25 GMT), after briefly touching $4,241.99 earlier in the session. U.S. Gold Futures climbed 1.2% to $4,252.59. So far this week, the metal has rallied more than 5%, continuing a powerful uptrend that began in early October.
Fed Policy Bets and Geopolitical Frictions Lift Gold
Market participants are now almost fully pricing in a 25 basis-point rate cut from the Fed in October, with another expected in December, following a more dovish tone from Chair Jerome Powell earlier this week.
The Federal Reserve’s Beige Book, released Wednesday, signaled that “U.S. economic activity was little changed in recent weeks,” with many firms citing weaker demand and persistent cost pressures. It also pointed to “early signs of cooling” in the labor market.
This more muted outlook reinforced expectations of a Fed pivot to support growth, which typically boosts gold’s appeal as yields retreat.
Rising trade tensions between Washington and Beijing also supported demand, after the U.S. threatened new tariffs on Chinese-made goods and China responded with expanded export controls on rare earth materials. This renewed friction raised concerns about a wider trade conflict, prompting a flight to safe-haven assets.
Meanwhile, the prolonged U.S. government shutdown—now entering its third week—has added to investor anxiety, delaying key economic data and amplifying fiscal concerns.
ANZ Sees Prices Reaching $4,400 by Year-End
Analysts at ANZ said gold’s upward momentum could continue in the coming months, supported by ongoing geopolitical risks and monetary easing by the Fed.
“While comparisons are being made to the 1980’s price peak, the current price rise is underpinned by structural drivers, indicating that elevated prices will likely sustain,” analysts wrote.
They forecast that gold could climb to $4,400 an ounce by the end of 2025 and reach a peak of around $4,600 by mid-2026 before easing in the latter half of that year.
Other Metals Trade in Tight Ranges
Elsewhere, movements in other precious and base metals were muted despite a weaker U.S. dollar.
Silver rose 0.3% to $53.13 per ounce, just below this week’s record highs of $53.6, while Silver Futures gained more than 1%. “The factors driving gold are also supporting silver’s momentum. Investors who missed the rally in gold prices are now turning their attention to the white metal for exposure,” ANZ analysts added.
Platinum Futures were steady at $1,698.00 per ounce.
On the base metals side, Benchmark Copper Futures on the London Metal Exchange held flat at $10,616.20 a ton, while U.S. Copper Futures rose 0.2% to $4.98 a pound.
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