Gold prices edged higher in Asian trading on Tuesday, nearing $3,700 per ounce, as markets priced in a likely Federal Reserve interest rate cut later this week. Investor demand for the safe-haven metal was also supported by ongoing concerns about the central bank’s independence.
Spot gold rose 0.1% to $3,681.20 per ounce by 01:42 ET (05:42 GMT), after briefly reaching a record $3,689.32 in early trade. U.S. December gold futures were steady at $3,718.20 per ounce. In the previous session, gold advanced roughly 1%, surpassing last week’s highs.
Expectations of Fed Easing Underpin Bullion Strength
The upward momentum comes amid widespread anticipation that the Fed will implement a 25-basis-point rate cut at the conclusion of its September 16–17 meeting—the first since December 2024. A softer U.S. dollar, trading near one-week lows, added further support to gold prices.
Political developments in Washington have also influenced the market. Stephen Miran, President Trump’s former economic adviser, was confirmed to the Fed Board of Governors, signaling potential increased White House influence on monetary policy. Meanwhile, a U.S. appeals court blocked Trump’s attempt to remove Fed Governor Lisa Cook, allowing her to likely attend this week’s Fed meeting. Trump is expected to challenge the ruling at the Supreme Court.
Industrial Metals Mixed as US-China Talks Continue
Other metals showed mixed performance. Silver futures remained largely unchanged at $42.95 per ounce, while platinum fell 0.6% to $1,410.45 per ounce. Copper retreated from recent peaks, with London Metal Exchange benchmark copper down 0.5% at $10,111.60 per ton, after hitting a 15-month high of $10,192 per ton. On Comex, copper fell 0.7% to $4.69 per pound.
U.S. and Chinese officials held fresh trade talks in Madrid, with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer representing the U.S., and Vice Premier He Lifeng and negotiator Li Chenggang representing China. A framework agreement was reached regarding U.S. ownership of TikTok operations, with Presidents Trump and Xi expected to finalize details later this week. Analysts suggest that easing tensions between the two largest economies could support industrial metals in the near term.
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