Gold continued to trade near record levels in Asian markets on Wednesday, following gains from the previous session, as investors positioned themselves ahead of expectations for a Federal Reserve interest rate reduction next week.
Spot gold climbed 0.5% to $3,646.14 per ounce at 02:17 ET (06:17 GMT), after touching an all-time high of $3,674.09/oz on Tuesday. December gold futures were mostly steady at $3,684.60/oz, after briefly surpassing $3,700 in the prior session.
Gold has surged nearly 40% so far this year, underpinned by safe-haven demand amid President Donald Trump’s trade measures and robust central bank buying.
U.S. Jobs Data Strengthen Fed Cut Outlook
Revised U.S. labor figures showed the economy added 911,000 fewer jobs over the past year than previously reported, pointing to a softening labor market. This has reinforced market expectations for a 25-basis-point Fed rate cut, with a smaller chance of a 50-basis-point reduction. Lower interest rates tend to increase gold and other metals’ appeal by making yield-bearing bonds less attractive.
“Monetary policy expectations are now likely to become the primary driver for gold’s direction,” ING analysts stated in a note.
ANZ raised its year-end gold target to $3,800 per ounce from $3,600 and now forecasts gold could peak near $4,000 by June 2026. “Macroeconomic challenges and tension arising from tariffs and sanctions are encouraging investors to hedge risks by allocating more funds to gold,” ANZ analysts said.
Precious and Base Metals Also Strengthen; China Data Monitored
Other precious metals were higher on Wednesday. Platinum futures rose 0.8% to $1,387.60/oz, while silver futures jumped almost 1% to $41.725/oz, remaining close to last week’s 14-year high.
“Silver is also gaining traction, as investors increase their exposure to gold through silver investments,” ANZ analysts added.
Copper markets were firmer as well, with London Metal Exchange benchmark copper rising 0.3% to $9,960.50 per ton, and U.S. copper futures up 0.3% to $4.59 per pound.
Data from China showed continued deflationary pressures. Consumer prices dropped more than expected in August, as government stimulus struggled to offset entrenched deflation, while producer prices fell for a 35th consecutive month.
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