Gold prices climbed on Wednesday, buoyed by rising expectations of further U.S. interest rate cuts and renewed concerns over U.S.-China trade tensions.
Spot gold was up 1.1% at $4,185.59 per ounce as of 07:04 AM WAT, after hitting a record $4,193.38 earlier in the session. U.S. gold futures for December delivery rose 1% to $4,204.30.
Investors are now pricing in a near-certain chance of a 25-basis-point rate cut by the Federal Reserve in both October and December. Bullion typically performs well in low-interest-rate environments and during periods of political and economic uncertainty.
Gold has surged 59% year-to-date, driven by a combination of factors including geopolitical tensions, expectations of U.S. rate cuts, strong central bank buying, the de-dollarisation trend, and robust inflows into exchange-traded funds.
Other precious metals also benefited from the safe-haven rally. Silver rose 1.9% to $52.43 per ounce, after touching a record $53.60 on Tuesday, supported by tightening spot market supply. Platinum climbed 0.8% to $1,644.49, while palladium gained 0.8% to $1,537.19.
Prices had broken the $4,000 mark for the first time last Wednesday, as investors flocked to gold amid expectations for U.S. rate cuts and concerns over a potential government shutdown. The rally was also fueled by worries that a tech-driven equity market surge could be forming an asset bubble.
Traders have poured into gold throughout the year, pushing it up more than 50% since January, amid global economic uncertainty, trade tensions under Donald Trump, and geopolitical crises.
