Gold prices held firm in Asian trading on Wednesday, briefly climbing to record levels above $3,500 an ounce as ongoing concerns over global fiscal stability and U.S. trade tariffs kept investors drawn to safe-haven assets. Gains, however, were limited by a rebound in the U.S. dollar, which recovered much of this week’s earlier losses amid a global selloff in government bonds that directed flows back into U.S. markets.
Spot gold traded at $3,534.61 per ounce, while December gold futures rose 0.3% to $3,601.15/oz. Earlier in the session, spot gold touched an intraday record of $3,547.09/oz. Despite the dollar’s resurgence, precious metals have maintained strong momentum throughout the week.
The rally in gold was initially triggered by a U.S. appeals court ruling that struck down most of former President Donald Trump’s trade tariffs, which can only remain in place until mid-October. Trump has criticized the ruling and intends to appeal to the Supreme Court. Any further legal challenges to tariffs could compel Washington to renegotiate trade agreements, adding uncertainty to global commerce.
Rising global bond yields on Tuesday, driven by concerns over high debt in developed economies, contributed to risk-off sentiment, supporting gold. At the same time, a strengthening dollar tempered gold’s upside. Investors now await key U.S. nonfarm payrolls data for August, which will influence expectations for Federal Reserve interest rate cuts. CME FedWatch shows futures markets are pricing in over a 90% probability of a 25-basis-point rate cut later this month, a factor that has buoyed metals markets in recent weeks.
Other Precious Metals Pull Back
Following strong gains earlier, other precious metals retreated slightly. Spot platinum fell 0.6% to $1,402.46/oz, near a one-month high, while silver slipped 0.3% to $40.75/oz after reaching a 14-year peak.
Copper Supported by Hopes for Chinese Demand
Industrial metals also saw mixed moves. London copper futures dipped 0.2% to $9,978 per ton after briefly surpassing $10,000 a ton for the first time since March. COMEX copper declined 0.3% to $4.6285 per pound from a one-month high.
Copper’s earlier strength this week has been driven by optimism that demand from China, the world’s top copper importer, will pick up. Reports suggest Beijing is preparing additional stimulus measures. Purchasing Managers’ Index data for August indicated some resilience in China’s economy, although further policy support may be needed to sustain growth.
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