Gold prices settled on Wednesday morning after briefly hitting a new record high, supported by ongoing worries over global fiscal stability and US trade tariffs.
Spot gold (XAU/USD) traded at $3,540.69 an ounce by 10:00 GMT, after touching $3,547 earlier in the session.
The rally was partially capped by a recovery in the dollar, which recouped much of its losses this week as a global government bond sell-off pushed investors back into US markets.
Gold’s surge earlier in the week followed a US appeals court ruling that struck down most of President Trump’s trade tariffs, keeping them in place only until mid-October. Trump said he would appeal to the Supreme Court, and any further rulings against the tariffs could require Washington to renegotiate recent trade agreements, adding potential disruption to global commerce.
Investors are also watching global bond markets, which saw yields rise amid concerns over debt levels in developed economies.
The dollar’s partial rebound limited gold’s advance, though focus remains on US nonfarm payrolls data later this week.
Markets are pricing in over a 90% chance of a 25 basis point Fed rate cut in September, according to CME FedWatch, a factor that has supported metals in recent weeks.