Gold continues record run; nears $4,400/oz on Fed easing bets, safe-haven rush

Investing.com-- Gold prices climbed to fresh record highs in Asian trading on Friday, now approaching the $4,400 per ounce mark, as growing expectations of a Federal Reserve rate cut this month and renewed U.S.-China tariff tensions drove investors toward safe-haven assets.

Spot gold rose 0.9% to $4,362.63 per ounce as of 01:49 ET (05:49 GMT), after briefly touching a new peak of $4,379.29 earlier in the session. U.S. Gold Futures for December jumped 1.7% to $4,376.91.

The yellow metal has now gained nearly 10% this week, gaining for the ninth consecutive week, and extending its record-breaking rally to a fifth straight session.

Gold continues record rally as Fed rate cut bets firm

Traders are pricing in a strong likelihood of a Fed rate cut in October as economic data continues to point to cooling inflation and slowing growth.

Fed Chair Jerome Powell earlier this week adopted a more dovish tone, flagging downside risks in the labor market and hinting that the central bank would remain data dependent and proceed on a “meeting-by-meeting” basis.

Support for easing is growing within the Fed. Governor Christopher Waller on Thursday backed a 25 bps cut in October, citing signs of persistent weakness in the labor market. 

Meanwhile, newly appointed Fed Governor Stephen Miran has championed a more aggressive easing path.

Beyond rate expectations, gold was supported by robust central bank purchases, inflows into gold ETFs, and elevated demand in Asia. In India, the elevated festival season buying also boosted demand.

The broader safe-haven rally was also supported by renewed trade tensions after the U.S. threatened 100% tariffs on select Chinese goods, while Beijing vowed to retaliate. Investors sought refuge in gold amid fears of a deeper economic fallout.

In other geopolitical news, President Donald Trump and Russian counterpart Vladimir Putin agreed on Thursday to another summit on the war in Ukraine.

Other metal markets dip

Other precious and industrial metals traded lower on Friday, even as the U.S. dollar remained on the back foot.

Silver Futures edged 0.2% lower to $53.17 per ounce, while Platinum Futures dropped 1.2% to $1,732.60/oz.

Benchmark Copper Futures on the London Metal Exchange slipped 1% to $10,545.20 a ton, while U.S. Copper Futures declined 0.7% to $4.95 a pound.