Gold prices reached fresh record levels in Asian trading on Tuesday, nearing $3,700 per ounce, as investors remained confident of a U.S. Federal Reserve interest rate cut later this week.
Concerns over the central bank’s independence further supported bullion’s safe-haven demand.
Spot Gold edged 0.1% higher to $3,681.2 per ounce by 01:42 ET (05:42 GMT), after hitting a record peak of $3,689.32 in early trading. U.S. Gold Futures for December were largely steady at $3,718.20/oz.
Bullion jumped 1% in the previous session, surpassing record levels notched last week.
Gold scales fresh high on Fed easing bets, independence concerns The rally was underpinned by widespread market belief that the Fed will deliver a 25-basis-point rate cut at the end of its September 16-17 meeting, its first since December 2024.
A weaker U.S. dollar, trading near one-week lows, added further support.
Political developments in Washington also bolstered metal’s safe-haven appeal. The Senate confirmed Stephen Miran, Trump’s economic adviser, to the Fed Board of Governors. Investors viewed the appointment as a sign that the central bank could face stronger pressure to align with White House policy.
Separately, a U.S. appeals court blocked President Donald Trump’s attempt to remove Fed Governor Lisa Cook, meaning she would likely attend this week’s Fed meeting. President Trump is expected to take the matter to the Supreme Court.
Copper retreats from 15-month peak; US-China talks in focus
Other precious metals were under pressure. Silver Futures were largely unchanged at $42.95 per ounce, while Platinum Futures fell 0.6% to $1,410.45.oz.
Benchmark Copper Futures on the London Metal Exchange fell 0.5% to $10,111.60 a ton, after hitting a 15-month high of $10,192/ton in the previous session.
U.S. Comex Copper Futures fell 0.7% to $4.69 a pound.
U.S. and Chinese officials held a fresh round of trade talks in Madrid, led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer on the U.S. side, and Vice Premier He Lifeng and negotiator Li Chenggang for China.
The discussions produced a framework deal on shifting ownership of TikTok’s U.S. operations, with Presidents Donald Trump and Xi Jinping expected to speak later this week to confirm the terms.
Easing trade tensions between the two world’s largest economies could provide a boost to industrial metals.
