Gold extended its record-breaking rally on Friday, edging closer to the $4,400-per-ounce milestone amid mounting expectations of a Federal Reserve rate cut and renewed global trade frictions. Spot gold climbed 0.9% to $4,362.63 per ounce by 01:49 ET (05:49 GMT) after touching a fresh all-time high of $4,379.29. U.S. gold futures for December delivery jumped 1.7% to $4,376.91.
The yellow metal has now advanced nearly 10% this week, marking its ninth consecutive weekly gain—its longest winning streak in years. The rally reflects investor demand for stability as economic signals from the U.S. and abroad hint at a broader slowdown.
Fed’s Dovish Shift Lifts Market Sentiment
Markets are increasingly betting that the Fed will cut rates by 25 basis points in October, with data showing cooling inflation and weaker job growth. Chair Jerome Powell’s comments earlier this week struck a cautious tone, noting “downside risks” in the labor market while emphasizing that policy decisions remain data-dependent.
Support for policy easing has also gained traction within the central bank. Fed Governor Christopher Waller voiced support for a modest October cut, while newly appointed Stephen Miran advocated for a more aggressive easing cycle.
Beyond monetary expectations, gold’s rise has been underpinned by:
- Strong central bank purchases to diversify reserves
- Rising inflows into gold ETFs
- Festive-season demand in Asian markets, especially India
Trade Tensions and Geopolitical Risks Add Fuel
Adding to the rally, the U.S. reignited trade tensions by threatening 100% tariffs on select Chinese goods. Beijing vowed retaliation, spurring investor fears of a deeper economic rift and driving capital toward safe havens.
Meanwhile, geopolitical risk remains high. U.S. President Donald Trump and Russian President Vladimir Putin agreed to a new summit to discuss the ongoing conflict in Ukraine, further boosting demand for gold as a hedge against uncertainty.
Other metals moved lower, reflecting investor rotation toward gold:
- Silver Futures dipped 0.2% to $53.17/oz
- Platinum slid 1.2% to $1,732.60/oz
- Copper fell 1% to $10,545.20 per ton on the LME
With investors bracing for a Fed pivot and rising global risks, gold’s trajectory suggests that the $4,400 mark may soon be breached—potentially setting the stage for even higher levels in the weeks ahead.