Gold Pushes to Fresh Record Highs Amid Fed Uncertainty

Gold prices climbed to new records in Asian trading on Tuesday, supported by safe-haven demand as cautious comments from Federal Reserve officials tempered expectations for aggressive interest rate cuts.

Haven Flows Drive Gold Higher

Spot gold surged to an all-time high of $3,759.18/oz, while gold futures touched $3,794.82/oz. Risk aversion set in across Asian markets, with Chinese equities retreating sharply after a strong rally, prompting investors to rotate into bullion.

Uncertainty was also stirred by U.S. President Donald Trump’s controversial remarks on vaccines, autism, and pharmaceuticals, which rattled drugmakers, alongside his announcement of steep fees for a popular U.S. work visa. These developments reinforced gold’s role as a hedge against political and policy instability.

Fed Commentary in Focus

Recent remarks from Fed policymakers injected caution into markets. Atlanta Fed President Raphael Bostic said he did not support an October rate cut given sticky inflation pressures, while Cleveland Fed President Beth Hammack voiced similar concerns. Both are non-voting members.

Conversely, new Fed Governor Stephen Miran reiterated his calls for deeper easing, aligning with Trump’s push for more aggressive cuts. Miran dissented at last week’s Fed meeting, preferring a 50 bps cut over the 25 bps reduction enacted.

Markets now await Fed Chair Jerome Powell’s address at 12:35 ET, where his tone will be key to shaping expectations on how fast easing may continue into 2025.

Other Metals Mixed

While gold led gains, other precious metals were steadier. Platinum rose 0.3% to $1,421.05/oz, while silver edged 0.2% higher to $44.31/oz. In contrast, industrial metals lagged, with LME copper slipping 0.3% to $9,975.05/ton and COMEX copper down 0.5% to $4.6275/lb.

U.S. Data in the Spotlight

Attention now shifts to a string of key U.S. economic indicators this week. The September PMI data is due later Tuesday, with expectations for slightly weaker growth in both manufacturing and services. The PCE price index, the Fed’s preferred inflation gauge, will be released Friday and is projected to show inflation remaining above the Fed’s 2% target.