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Gold prices surged to a fresh record high in Asian trading on Tuesday, as persistent bets on U.S. interest rate cuts and heightened uncertainty over U.S. President Donald Trump’s trade tariffs boosted safe-haven demand. The dollar’s slide to a five-week low also amplified momentum across broader metal markets.
Gold at All-Time High
- Spot gold jumped 0.8% to $3,508.54/oz, before trimming gains to trade 0.5% higher at $3,494.56/oz by 01:25 ET (05:25 GMT).
- Gold futures (December) surged to a peak of $3,578.20/oz, also marking fresh highs.
- The yellow metal is riding its fifth straight session of gains, after climbing nearly 5% in August.
Tariff Ruling Sparks Uncertainty
Gold’s rally was reinforced after a U.S. appeals court ruled Trump’s sweeping tariffs illegal. While the duties remain in place until mid-October pending a Supreme Court appeal, the decision amplified market uncertainty over U.S. trade policy.
- Analysts warn that a reversal of tariffs could force Washington to revisit trade deals with partners, clouding the outlook for global commerce.
- This comes as many of Trump’s tariffs, introduced in August, are already feeding into inflation expectations.
Rate Cut Bets Power Gold
Despite sticky inflation, traders are firmly betting on a 25bps cut at the Fed’s September meeting, with CME FedWatch showing an 85% probability.
- Fed Chair Jerome Powell hinted at possible easing but remains cautious about inflation risks from tariffs.
- The dollar index’s retreat to a five-week low supported non-yielding assets like gold, which become more attractive when yields fall.
Silver and Platinum Outperform
- Silver touched a 14-year high, climbing above $40/oz for the first time since 2011, before easing to $40.75/oz.
- Platinum advanced 0.7% to $1,421.55/oz, staying near an 11-year high.
Both metals have outpaced gold in recent months, driven by relative undervaluation and speculative inflows.
Copper Supported by China PMI
Among industrial metals, copper prices held firm as mixed Chinese PMI data spurred hopes for fresh stimulus from Beijing.
A private survey, however, indicated factory expansion at the fastest pace in five months, hinting at potential recovery in industrial demand.
Official PMI showed a fifth straight month of contraction.
