Another day, another record. Gold surged to yet another all-time high in Asian trading on Thursday, topping out at $4,238 before getting smacked back down, though this time, it bounced back faster.
By 10:00 GMT, spot gold was trading around $4,233, marking a fourth straight session of record highs.
The script hasn’t changed much: Fed cut hopes, trade nerves, and a pinch of chaos. Traders are now almost fully pricing in a 25 basis-point rate cut from the Federal Reserve in October, with another likely in December, after Jerome Powell’s dovish remarks earlier this week.
Wednesday’s Beige Book added to the case for easing. It showed the US economy barely moving the needle in recent weeks, with slowing demand, sticky costs, and early signs of a softer jobs market. That was all the confirmation gold bulls needed to keep pressing higher.
On the geopolitical front, the US-China drama refuses to fade. Washington is threatening fresh tariffs on Chinese goods, while Beijing’s tightening of rare earth exports has upped the ante. Add in a US government shutdown entering its third week, and there’s no shortage of reasons for investors to park cash in gold.
Momentum, safe-haven demand, and rate-cut optimism continue to drive gold, though volatility remains high.