Gold surged to new all-time highs during Friday’s Asian session, moving closer to the $4,400 per ounce threshold as growing expectations of a rate cut by the Federal Reserve and escalating U.S.-China trade frictions intensified demand for safe-haven assets.
Spot gold climbed 0.9% to $4,362.63 an ounce at 01:49 ET (05:49 GMT), after briefly reaching a fresh peak of $4,379.29 earlier in the session. U.S. gold futures for December delivery rose 1.7% to $4,376.91.
The precious metal is up nearly 10% this week and has now advanced for nine consecutive weeks, marking its fifth straight session of record-breaking gains.
Investors pile into gold as Fed signals dovish tilt
Market participants are increasingly betting on a rate cut in October as U.S. economic indicators continue to show cooling inflation and slowing growth.
Fed Chair Jerome Powell struck a more dovish note earlier this week, pointing to downside risks in the labor market and emphasizing that monetary policy will remain data-driven and progress “meeting-by-meeting.”
Support for policy easing is also gaining traction within the central bank. Governor Christopher Waller on Thursday endorsed a 25 basis-point cut in October, citing ongoing softness in employment figures. Meanwhile, newly appointed Governor Stephen Miran has advocated for a more aggressive path toward easing.
Beyond interest rate expectations, gold is also benefiting from strong demand drivers: central bank purchases, rising inflows into gold-backed ETFs, and robust buying in Asian markets. In India, seasonal festival demand has further strengthened physical gold consumption.
The safe-haven appeal of gold has been amplified by renewed trade tensions. Washington recently threatened to impose 100% tariffs on selected Chinese products, prompting Beijing to vow retaliation. Concerns over the potential economic fallout have spurred investors to seek shelter in gold.
In parallel, U.S. President Donald Trump and Russian President Vladimir Putin agreed on Thursday to hold another summit to discuss the war in Ukraine — adding a geopolitical layer to market uncertainty.
Other metals trade lower
While gold extended its gains, other precious and base metals were under pressure.
Silver futures edged 0.2% lower to $53.17 an ounce, while platinum futures slipped 1.2% to $1,732.60 per ounce.
On the industrial side, benchmark copper futures on the London Metal Exchange declined 1% to $10,545.20 per ton, and U.S. copper futures fell 0.7% to $4.95 per pound.
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