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Gold prices surged to new record highs in Asian trading on Thursday, marking a fourth consecutive session of all-time peaks, as renewed U.S.-China trade tensions and rising expectations of Federal Reserve rate cuts intensified demand for the precious metal.
Spot gold climbed 0.7% to $4,237.87 per ounce by 04:25 GMT (00:25 ET), after touching an intraday high of $4,241.99. U.S. Gold Futures advanced 1.2% to $4,252.59, extending the metal’s strong run that has already seen it gain over 5% this week and nearly 20% since early October.
Fed Rate-Cut Expectations Lift Bullion
Investor sentiment remained anchored on dovish signals from the Federal Reserve, with markets now fully pricing in a 25 basis-point rate cut in October, followed by another in December.
The Fed’s Beige Book, released Wednesday, showed that U.S. economic activity was largely unchanged in recent weeks, while businesses cited slowing demand and easing cost pressures. Early signs of labor market cooling further supported the view that the Fed may soon pivot toward a more accommodative stance.
Lower interest rates tend to boost gold’s appeal by reducing the opportunity cost of holding non-yielding assets, particularly as U.S. Treasury yields retreat from recent highs and the dollar weakens.
Trade Friction and Political Uncertainty Add to Gold’s Luster
Safe-haven demand for gold also strengthened amid renewed U.S.-China trade friction. Washington’s threat to impose new tariffs on Chinese goods and Beijing’s expanded export controls on rare earths have reignited fears of a broader trade war between the world’s two largest economies.
Adding to uncertainty, the U.S. government shutdown, now entering its third week, has delayed key economic data releases and heightened investor unease over fiscal stability in Washington.
ANZ Forecasts $4,400 by Year-End
Analysts at ANZ remain bullish, forecasting that gold will reach $4,400/oz by the end of 2025, peaking near $4,600 by mid-2026 before easing slightly.
They emphasized that the current rally is “underpinned by structural drivers,” unlike past speculative surges, with central bank purchases, geopolitical tensions, and policy easing serving as key tailwinds.
Silver and Other Metals Trade Mixed
Other precious and industrial metals moved within narrow ranges. Silver edged up 0.3% to $53.13/oz, staying close to record levels after rallying above $53.6 earlier this week. Analysts noted that investors who missed the gold rally are increasingly rotating into silver as a high-beta alternative.
Platinum Futures were flat at $1,698.00/oz, while Benchmark Copper Futures on the London Metal Exchange held steady at $10,616.20 per ton. U.S. Copper Futures ticked 0.2% higher to $4.98 per pound, supported by a weaker dollar and steady Chinese demand.
With markets balancing Fed-driven optimism and geopolitical caution, analysts say gold’s record-setting run could still have room to extend — especially if global risks continue to deepen into year-end.
