Gold briefly climbed to an all-time high of $3,547 per ounce in Asian trading on Wednesday, before retreating as a stronger U.S. dollar capped gains. By 04:26 GMT, spot gold traded at $3,534.61, while December futures rose 0.3% to $3,601.15.
The rally comes as investors seek safe havens amid heightened risks to global fiscal stability and a U.S. trade dispute. A federal appeals court recently ruled that most of former President Donald Trump’s tariffs were illegal, though he vowed to challenge the decision at the Supreme Court. Markets now face the possibility of renegotiated trade deals, injecting new uncertainty into global commerce.
At the same time, rising bond yields worldwide—a reflection of mounting sovereign debt burdens—spurred volatility. A sell-off in global bonds gave the dollar a temporary lift, tempering gold’s momentum.
Fed Policy in Focus as Dollar Strengthens
The U.S. dollar, still the world’s most liquid safe-haven asset, rebounded this week, limiting bullion’s upside. The next key test comes with August’s nonfarm payrolls report, a release that could steer the Federal Reserve’s next move.
Futures markets tracked by CME’s FedWatch tool now price a 90% probability of a quarter-point rate cut later this month. Lower borrowing costs tend to weaken the dollar and bolster precious metals, underscoring why traders are closely monitoring labor data.
Other metals saw profit-taking after recent rallies:
- Silver slipped 0.3% to $40.75/oz, just below a 14-year peak.
- Platinum declined 0.6% to $1,402.46/oz but held near a one-month high.
These moves highlight the tension between long-term bullish fundamentals and short-term currency headwinds.
Copper Nears $10,000 on China Stimulus Hopes
Industrial metals also drew investor attention. London copper futures briefly crossed $10,000 a ton for the first time since March, before settling at $9,978. COMEX copper mirrored the move, dipping 0.3% to $4.63 per pound.
The surge reflects optimism over Chinese demand. Reports suggest Beijing is preparing new stimulus measures to support growth, following August’s purchasing managers index data that showed modest resilience but underscored the need for further policy support.
Copper, often called “Dr. Copper” for its role as a barometer of economic health, has now logged one of its strongest weeks of the year—an encouraging sign for markets betting on a recovery in the world’s largest consumer of industrial metals.