Gold hit a new record on Tuesday, climbing to $3,501.59 an ounce in early Asian trading. The rise surpassed the previous high of $3,500.10 set in April and was driven by investors seeking safe‑haven assets amid a weaker US dollar and expectations of possible Federal Reserve rate cuts.
In Asian markets, both the Nikkei and Hang Seng indices posted gains. The Hang Seng was buoyed by a strong performance from Chinese e‑commerce giant Alibaba, whose shares jumped almost 20% on Monday after the company reported impressive financial results and significant AI‑revenue growth. The index rose 2.2% on Monday and added another 0.1% on Tuesday, while the Shanghai Composite also moved higher. Chinese equities received further support from an improved Purchasing Managers’ Index, a key gauge of industrial output, released on Monday.
Charu Chanana of Saxo Markets noted that Chinese companies are showing tangible earnings growth from AI and cloud investments, unlike many US peers that still face questions about AI monetisation and valuation. The Nikkei, which had slipped 1.2% on Monday due to declines in chip stocks, recovered some ground on Tuesday. Seoul’s market also advanced, helped by recoveries in SK Hynix and Samsung Electronics after concerns over their chip plants in China.
Wall Street was closed on Monday for the Labor Day holiday. The US dollar traded mixed against its main rivals, and the US market had retreated from record highs on Friday after an accelerated inflation reading narrowed the Federal Reserve’s policy options. As of 0300 GMT, global markets showed mixed performance: the Nikkei 225 was up 0.3% at 42,292.88, the Hang Seng Index rose 0.1% to 25,644.02, and the Shanghai Composite gained 0.8% to 3,839.97. In currency markets, euro/dollar and pound/dollar pairs fell, while the dollar/yen pair rose. Oil prices also climbed, with Brent North Sea crude up 0.5% to $68.46 per barrel and West Texas Intermediate up 1.5% to $64.96 per barrel.
These developments reflect ongoing concerns about economic growth, inflation, and monetary policy. As investors continue to navigate these uncertainties, the performance of safe‑haven assets like gold and the movements in major indices will remain under close watch.
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