Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained nearly 1% to close at a fresh all-time high near $4,177 as the dollar sank further on rate-cut hopes while new trade war tensions stoked demand for safe havens. Silver jumped 1.5% to finish at $51.07 an ounce.

Speaking publicly for the last time before next week's FOMC meeting, Fed Chair Jerome Powell struck a decidedly dovish posture yesterday, describing the US job market as mired in "low-hiring, low-firing doldrums" while leaving the door open to two more rate cuts this year.

Fed fund futures traders are now pricing in a 98% likelihood of a quarter-point cut next week, followed by a 100% expectation for another in December.

Meanwhile, President Trump is considering cutting all trade ties with China after it substantially increased controls on rate earth metals, threatening crucial global supply chains. The move by Beijing came in response to Trump's threat to raise tariffs on imports from China by another 100%.

The dollar fell 0.3% against major rivals, including safe-haven currencies like the yen and Swiss franc, as currency traders priced in the new trade war threats and upcoming rate cuts. A falling dollar lifts gold and other commodities by making them cheaper overseas.

Gold has now advanced nearly 60% this year, driven by geopolitical uncertainty, aggressive central bank purchases, trade wars, and global de-dollarization.

Platinum and palladium rose 0.8% and 0.5%, respectively.

At the New York spot close: gold gained $38.20 to $4,176.90; silver surged 76 cents to $51.07; platinum picked up $13.60 to $1,668.70; and palladium rose $8.05 to $1,539.75 an ounce.