FX.co ★ Gold Breaks $4,300 as Record Rally Continues

Gold prices soared to new record levels for the fourth consecutive session on Thursday, exceeding $4,300 per ounce. This increase is attributed to investors seeking a safe haven amid escalating US-China trade tensions and the ongoing shutdown of the US government. The precious metal has experienced a surge of over 60% this year, driven by robust central bank purchases, anticipated aggressive rate cuts, and intensified geopolitical risks. Recent remarks by Fed Chair Jerome Powell regarding signs of a weakening labor market have led investors to almost entirely factor in a 25 basis points rate cut in this month's meeting, with an additional cut anticipated in December. This has enhanced gold's attractiveness in a low-interest-rate environment. In trade matters, US officials criticized China's recent crackdown on rare earth exports on Wednesday, cautioning that these restrictions pose a threat to global supply chains and indicating that the US may consider countermeasures.