Gold just can’t stop breaking records. Prices surged again in European trading on Wednesday, smashing through $4,200 before getting smacked back down to $4,163 as volatility refused to let up.
By 10:50 GMT, the metal was holding around $4,192, still near the top end of its range after three straight sessions of record highs.
Gold’s now logged eight consecutive weeks of gains and looks set for another, fuelled by traders doubling down on bets the Federal Reserve will cut rates soon.
Tuesday’s comments from Jerome Powell didn’t calm anyone down either. He called the latest rate move a “risk-management cut” and admitted the labour market’s looking softer than expected. That was enough for markets to start pricing in more cuts, possibly in both October and December. Lower yields, a weaker dollar, and a Fed that’s clearly turning dovish? It’s a perfect recipe for gold.
Adding extra spice, Trump couldn’t resist poking Beijing again. He floated the idea of cutting off some trade ties with China, even mentioning cooking oil imports, after Beijing pulled back on US soybean purchases. Both sides have since slapped new port fees on each other’s shipping firms, turning up the heat on what’s already a messy trade backdrop.
Gold’s sitting right in the middle of it all, part safe haven, part momentum play, and very much still the market’s favourite hedge against chaos.