Spot gold continued its record-breaking rally, rising 1.2% to $4,188.95 per ounce as of 08:53 a.m. ET after hitting an all-time high of $4,217.95 earlier. U.S. gold futures for December delivery gained 1% to $4,205.20.
Fawad Razaqzada, market analyst at City Index and FOREX.com, said, “The metal has been on a tear and doesn’t look like it wants to stop. With U.S.-China trade tensions reigniting, investors have more reason to hedge their long equity bets by moving into gold.”
Gold has surged nearly 58% this year, supported by a mix of geopolitical tensions, interest rate cut expectations, central bank buying, de-dollarisation, and strong ETF inflows. Analysts believe gold could reach $5,000 per ounce, though short-term corrections are expected as traders take profits.
The U.S. dollar slipped after Federal Reserve Chair Jerome Powell signaled a dovish outlook, noting the labor market remains weak. Markets are now pricing in a 25-basis-point rate cut in October and another in December.
Gold, traditionally seen as a hedge against inflation and uncertainty, thrives in low-rate environments as it offers no yield.
Adding to the safe-haven demand, President Donald Trump hinted at possible trade cuts with China after both nations imposed new port fees. Investors are also watching the U.S. government shutdown, which has paused official data releases and clouded economic forecasts.
Meanwhile, silver surged 2.5% to $52.75 after reaching a record $53.6 on Tuesday. Tight supply in London has fueled the rally, though analysts warn it could ease if shortages resolve. Platinum rose 0.9% to $1,651.85, and palladium gained 1.8% to $1,553.43.
Gold’s momentum shows no signs of slowing, as investors continue seeking safety amid global economic and political uncertainty.
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