Gold prices surged beyond $4,230 per ounce on Thursday, achieving a new peak. This upward trend is mainly fueled by increased safe-haven demand and the growing anticipation of a dovish shift in US monetary policy. Federal Reserve Chair Jerome Powell's recent comments, which pointed to weakening conditions in the labor market, have led investors to nearly fully anticipate a 25 basis point rate cut during this month's meeting, with another reduction potentially occurring in December. This outlook has also placed downward pressure on the dollar, thereby enhancing the appeal of gold to international buyers.
In terms of trade issues, US officials criticized China's recent tightening of rare earth export restrictions on Wednesday, cautioning that such measures could jeopardize global supply chains and hinting at possible US responses. Treasury Secretary Scott Bessent indicated that Washington might consider implementing export limits or tariffs on China's imports of Russian oil, provided there is coordination with European partners. Concurrently, the ongoing government shutdown continues to pose risks for the US economy, adding to the existing market uncertainties.
