Gold prices rose Tuesday, climbing to fresh record levels as investors remained confident of a U.S. Federal Reserve interest rate cut later this week.
At 08:15 ET (12:15 GMT), spot gold edged 0.4% higher to $3,693.97 per ounce, after hitting a record peak of $3,699.57 earlier in the session, and U.S. gold futures for December were up 0.3% to $3,730.92/oz.
Bullion jumped 1% in the previous session, surpassing record levels notched last week.
“Gold prices have surged more than 40% so far this year amid Trump’s aggressive trade policy, conflicts in the Middle East and Ukraine, and central bank buying,” said analysts at ING, in a note.
Gold scales fresh high on Fed easing bets
This 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 even more 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.
Commerzbank lifts gold price forecasts
Analysts at Commerzbank have lifted their forecast for gold prices by the end of the year, citing predictions for “slightly more” future Federal Reserve interest rate cuts than markets are currently pricing in.
In a note to clients, the analysts led by Carsten Fritsch said they now expect gold prices to stand at $3,600 per troy ounce this year and at $3,800 by the conclusion of 2026 — $200 more than their initial outlook, respectively.
Policymakers are tipped by Commerzbank to roll out 75 basis points of rate reductions over the rest of the year and a further 125 bps in cuts in 2026 — marginally above the level indicated by Fed Funds Futures. Interest rates now stand at a target range of 4.25% to 4.5%.
Copper retreats from 15-month peak
Elsewhere, Silver Futures were up 0.8% to $43.29 per ounce, while Platinum Futures gained 0.4% to $1,423.45.oz.
Benchmark Copper Futures on the London Metal Exchange fell 0.2% to $10,147.00 a ton, after hitting a 15-month high of $10,192 a ton in the previous session.
U.S. Comex Copper Futures fell 0.2% to $4.7085 a pound.
“Recent reports suggest that Chile expects production to grow this year and next, targeting a record 6 million tons by 2027, despite setbacks at two major mines (owned by Codelco and Teck Resources), offering some relief to a tight global market,” said ING.
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.
Read the full article HERE.
