Gold prices have surged to a record high, driven by expectations of further U.S. interest‑rate cuts and renewed trade tensions between the United States and China. As of 07:04 a.m. WAT, spot gold rose 1.1 % to $4,185.59 per ounce after reaching a peak of $4,193.38 earlier in the session. U.S. gold futures for December delivery also gained 1 % to $4,204.30.
The uptrend is attributed to a low‑interest‑rate environment and ongoing economic uncertainty. Investors are increasingly pricing in a near‑certain chance of a 25‑basis‑point Fed rate cut in both October and December, which has boosted safe‑haven demand. Gold has risen 59 % year‑to‑date, reflecting a combination of geopolitical and economic uncertainties, expectations of U.S. rate cuts, central‑bank buying, the de‑dollarisation trend, and strong exchange‑traded‑fund inflows.
Other precious metals posted notable gains as well. Silver rose 1.9 % to $52.43, platinum climbed 0.8 % to $1,644.49, and palladium increased 0.8 % to $1,537.19. The rally in precious metals comes amid concerns over a possible U.S. government shutdown and the risk of an asset bubble in equity markets.
Gold broke the $4,000 barrier for the first time last Wednesday, spurred by expectations of U.S. rate cuts and trade worries. The ongoing trade war between the United States and China, together with broader global economic uncertainty, has propelled gold prices upward by more than 50 % since the start of the year. As investors continue to seek safe‑haven assets, gold is likely to remain a focal point. Upcoming Fed rate cuts and the progress of trade negotiations will be closely watched for their potential impact on gold prices and the broader economy.
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