Gold soared to a fresh record above USD4,300 an ounce Thursday, rallying for a fourth straight session as investors piled into safe havens amid deepening US-China tensions and growing bets on Federal Reserve rate cuts.
The metal is now up more than 60 percent this year, fueled by central bank buying, geopolitical risk, and expectations of looser monetary policy. Fed Chair Jerome Powell this week flagged a weakening labor market, prompting traders to nearly fully price in a rate cut this month—and possibly another in December.
Lower rates make gold more attractive by reducing the opportunity cost of holding the non-yielding asset.
Tensions with China also flared after the US condemned Beijing’s tighter rare earth export curbs on Wednesday, warning they could disrupt global supply chains. The White House signaled possible retaliation, adding fresh uncertainty to an already strained trade relationship.
Meanwhile, the ongoing U.S. government shutdown continues to rattle markets, pushing investors further toward gold.
With economic risks stacking up and policy responses looming, gold’s momentum shows little sign of slowing.
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