Gold prices extended their record-breaking rally in Asian trading on Thursday, rising for the fourth consecutive session. The metal climbed 0.7% to $4,237.87 per ounce by 00:25 ET (04:25 GMT), briefly touching $4,241.99, while U.S. gold futures advanced 1.2% to $4,252.59. The precious metal has now gained over 5% this week, building on momentum that began in early October.
The surge is being fueled by mounting expectations of Federal Reserve rate cuts and renewed U.S.-China trade tensions, both of which are prompting investors to seek safety in gold. The metal’s relentless rally underscores a growing shift toward defensive assets amid economic uncertainty.
Fed Easing and Trade Risks Drive Investor Demand
Markets are now pricing in a 25-basis-point rate cut in October, with another expected in December, following Chair Jerome Powell’s dovish remarks earlier this week. The Federal Reserve’s Beige Book revealed subdued economic activity, with signs of slowing demand and moderating labor conditions, bolstering expectations for monetary easing.
Lower interest rates typically reduce the opportunity cost of holding gold, boosting its appeal. Meanwhile, geopolitical tension between Washington and Beijing added further fuel. The U.S. is reportedly preparing new tariffs on Chinese goods, while China retaliated by tightening export controls on rare earth materials—a critical supply chain component.
Other uncertainty factors supporting the rally include:
- The ongoing U.S. government shutdown, now entering its third week.
- Delayed economic reports, clouding growth forecasts.
- Investor rotation from equities to safe-haven assets.
Analysts See Gold Near $4,400 by Year-End
Analysts at ANZ Bank forecast gold to reach $4,400 per ounce by the end of 2025, potentially peaking near $4,600 by mid-2026 before moderating later in the year. They note that unlike the speculative surges of past decades, this rally is structurally driven by persistent inflation risks, geopolitical tensions, and policy easing.
Other metals were more subdued:
- Silver gained 0.3% to $53.13, just shy of this week’s record high.
- Platinum traded steady at $1,698.00, while
- Copper hovered at $10,616.20 per ton on the LME.
“Investors who missed gold’s run-up are now turning to silver,” ANZ analysts said, highlighting the spillover momentum across the precious metals sector.