Gold prices rallied to fresh record highs on Thursday during Asian trading, driven by growing expectations of further Federal Reserve rate cuts and renewed trade friction between the U.S. and China — boosting demand for safe-haven assets.
Spot gold climbed 0.7% to $4,237.87/oz after hitting a record peak of $4,241.99 earlier, while U.S. gold futures rose 1.2% to $4,252.59/oz. The metal has gained more than 5% so far this week, extending a strong rally that began in early October.
Powell’s recent dovish commentary and the Fed’s Beige Book signaling softening demand and cooling labor market conditions have pushed markets to fully price in rate cuts in both October and December.
Trade tensions also resurfaced, after Washington threatened additional tariffs and Beijing responded with rare-earth export curbs — stoking fears of another escalation. Meanwhile, the ongoing U.S. government shutdown, now in its third week, has further added to risk aversion.
Analysts at ANZ expect gold to reach $4,400 by year-end and potentially climb to $4,600 by mid-2026, citing strong structural tailwinds including central bank buying and geopolitical instability.
Other metals traded in tight ranges:
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Silver up 0.3% to $53.13/oz
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Platinum flat near $1,698/oz
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Copper steady around $10,616/ton