Gold edged lower on Tuesday after briefly hitting an all-time high, as markets reacted to ongoing expectations for U.S. interest rate cuts and uncertainty surrounding President Donald Trump’s trade tariffs. The precious metal remained in focus as investors sought safe-haven assets amid economic and policy concerns.
Silver and platinum also posted strong gains, with silver approaching a 14-year high and platinum nearing an 11-year peak. The moves coincided with the U.S. dollar weakening to a five-week low on renewed speculation that U.S. rates may fall.
Spot gold jumped 0.8% to $3,508.54 per ounce, while December gold futures touched $3,578.20/oz. By early trading, spot gold pared some gains, trading 0.2% higher at $3,482.28/oz.
Tariff rulings and Fed bets support metals
The latest gold rally came amid uncertainty over Trump’s tariffs, following a court ruling that declared them unlawful. While the court allowed the tariffs to remain in effect until mid-October, the president criticized the decision and plans to appeal to the Supreme Court. This uncertainty, particularly surrounding tariffs implemented in August, encouraged investors to seek safety in metals.
Meanwhile, expectations for a potential Federal Reserve rate cut in September further boosted gold and other metals. CME FedWatch data indicated roughly an 85% chance of a 25-basis-point reduction, despite the July PCE inflation reading showing persistent price pressures above the Fed’s 2% target. Fed Chair Jerome Powell had previously suggested the possibility of a September rate cut, though no formal commitment was made due to inflation concerns.
A weaker dollar also supported non-yielding assets like metals, as lower interest rates make them more attractive compared to government bonds.
Spot silver climbed 0.1% to $40.7545/oz, briefly exceeding the $40 mark for the first time since late 2011. Platinum gained 0.7% to $1,421.55/oz, staying near an 11-year high. Silver and platinum have outperformed gold in recent months, with lower relative prices and gold consolidation fueling speculative demand in both metals.
Industrial metals also saw upward momentum. Copper prices increased as investors reacted to mixed PMI data from China, anticipating additional stimulus measures. London Metal Exchange copper futures rose 0.3% to $9,919 per ton, while COMEX copper advanced 0.4% to $4.5905 per pound.
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