On Monday, gold prices in Asian trading rose to a more than four-month high – almost $3552 per ounce. This happened amid hopes for a Federal Reserve rate cut this month. At the same time, the independence of the Fed and fears about US tariffs increased demand for bullion as a safe haven, writes UNN with reference to Investing.
Details
Spot gold prices rose 0.9% to $3480.56 per ounce, the highest level since mid-April. Gold futures for December jumped 1% to $3551.82 per ounce by 01:55 ET (05:55 GMT).
Gold prices posted sharp gains for the fifth consecutive day after rising nearly 5% in August. In other metal markets, silver prices jumped to a 14-year high. Investors increased bets on a September rate cut after the latest US personal consumption expenditures price index largely met forecasts.
According to the CME FedWatch tool, markets are pricing in a close to 90% chance of a 25 basis point rate cut this month. Lower borrowing costs reduce the opportunity cost of holding non-yielding assets such as gold, making them attractive.
Attention now turns to US employment data, due to be released later this week. A weak non-farm payrolls report could strengthen the case for short-term easing, while stronger figures could lead investors to temper expectations.
The flow of investment into gold as a safe asset was also supported by trade policy uncertainty.
Gold prices fall amid strengthening dollar27.08.25, 09:15 • [views_4667]
A US appeals court ruled last week that many Trump-era tariffs were illegal, raising questions about the future of hundreds of billions of dollars in tariffs on Chinese imports.
The court left the tariffs in place until October 14 to give the Trump administration time to appeal to the US Supreme Court.
Investors also closely watched for signs of political pressure on the US central bank. Last week, President Donald Trump attempted to fire Federal Reserve Governor Lisa Cook, citing alleged mortgage fraud in 2021. Cook rejected Trump's authority to fire her and filed a lawsuit challenging the dismissal.
Other precious metals were also optimistic on Monday, with platinum futures rising 1.3% to $1346.65 per ounce. Silver futures jumped 1.5% to $41.32 per ounce, the highest level since August 2024.
Benchmark copper futures on the London Metal Exchange were virtually unchanged at $9934.65 per tonne, while US copper futures fell 0.2% to $4.60 per pound.
A private survey in China – the world's largest copper importer – showed on Monday that China's industrial activity grew at its fastest pace in five months in August amid easing US-China trade concerns.
In contrast to official data on Sunday, which showed a fifth month of contraction, these figures signaled early signs of improving industrial demand in China.
Addition
On Tuesday, gold rose in price to a two-week high in Asian trading. The reasons were both the fall of the dollar and the escalation of the confrontation between Donald Trump and the US Federal Reserve after the president's high-profile statement about Lisa Cook's dismissal.