Gold prices climbed to fresh record highs in early Asian trading on Friday, edging closer to the $4,400 per ounce milestone as mounting expectations of a rate cut by the Federal Reserve and heightened U.S.-China trade tensions triggered a flight to safe-haven assets.
Spot gold gained 0.9% to $4,362.63 an ounce at 01:49 ET (05:49 GMT), after briefly reaching a new all-time high of $4,379.29 earlier in the session. U.S. gold futures for December delivery jumped 1.7% to $4,376.91.
The metal is up nearly 10% for the week, advancing for the ninth straight week and extending its record-setting streak to a fifth session in a row.
Fed outlook fuels gold momentum
Traders increasingly expect a Fed rate cut in October as U.S. economic data continues to show cooling inflation and slower growth.
Earlier this week, Fed Chair Jerome Powell adopted a notably dovish stance, warning of downside risks in the labor market and stressing that the central bank would remain data-driven, making decisions on a “meeting-by-meeting” basis.
The push for easier policy is gaining traction among Fed officials. Governor Christopher Waller on Thursday expressed support for a 25-basis-point cut in October, citing persistent weakness in the job market. Newly appointed Governor Stephen Miran has also called for a more assertive easing strategy.
Beyond monetary policy expectations, gold’s rally is being supported by strong physical demand — including ongoing central bank buying, inflows into gold-backed ETFs, and robust seasonal demand from Asia, particularly India during the festival period.
Geopolitical risk has added further fuel to the rally. The U.S. recently threatened to impose 100% tariffs on selected Chinese products, to which Beijing vowed to retaliate. The flare-up in trade tensions has reinforced gold’s safe-haven appeal.
Additionally, U.S. President Donald Trump and Russian President Vladimir Putin agreed to hold another summit to discuss the war in Ukraine, adding another layer of geopolitical uncertainty.
Other metals under pressure
While gold continues its upward march, other metals traded lower.
Silver futures slipped 0.2% to $53.17 per ounce, while platinum futures fell 1.2% to $1,732.60.
Industrial metals also weakened, with benchmark copper futures on the London Metal Exchange dropping 1% to $10,545.20 per ton, and U.S. copper futures down 0.7% to $4.95 per pound.
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