Gold advanced in Asian trading, supported by safe-haven flows amid fresh worries about fiscal sustainability in developed markets—most notably Japan—and lingering uncertainty over the U.S. Federal Reserve’s December decision.

• Spot gold: +0.6% to $4,092.51/oz
• Dec futures: +0.7% to $4,093.79/oz

Japan’s bond selloff stokes haven bids

A sharp climb in long-dated Japanese government bond (JGB) yields—20s and 30s at multi-decade highs, the 10-year near its strongest level since 2008—intensified concerns over debt dynamics and funding capacity as Prime Minister Sanae Takaichi weighs a reportedly larger-than-expected fiscal package (around ¥25 trillion, ~$163B). With Japan a key global creditor, instability in JGBs is seen as a potential cross-market risk, adding support to bullion.

Fed path still murky; minutes ahead

Gold also drew support from mixed U.S. policy expectations. While recent jobless claims hinted at softening labor conditions, markets still lean toward no change in December, with implied odds of a 25 bps cut near 42% going into the Oct. FOMC minutes due later Wednesday. The lack of clarity has kept demand for hedges elevated.

Dollar steadies; tech valuation angst persists

A steadier dollar after recent gains and a risk-off tone across equities—driven by renewed skepticism over stretched AI-linked valuations—helped underpin the metal. Results from NVIDIA (NVDA) later in the day are seen as a key sentiment catalyst for broader risk assets.

Other metals

• Silver (spot): +1.3% to $51.38/oz
• Platinum (spot): +0.9% to $1,547.96/oz

Outlook

With fiscal concerns in Japan, a fragile risk backdrop into mega-cap tech earnings, and an ambivalent Fed reaction function, near-term asymmetry favors gold on dips—though sustained dollar strength or a more hawkish read of the FOMC minutes would cap the upside.