FX.co ★ Gold Sets New Record Peak

Gold prices surged to a new all-time high of $4,140 per ounce on Tuesday. This rise is driven by increased safe-haven purchases amidst escalating US-China trade tensions and growing speculation around potential US interest rate reductions. Last week, US President Trump intensified the trade conflict with China by threatening to impose a new series of tariffs on Chinese imports and implementing export restrictions. In retaliation, Beijing has promised to take counteractions if these threats materialize. Furthermore, market worries persist regarding the ongoing US government shutdown, which, according to Treasury Secretary Scott Bessent, is starting to negatively impact the economy. Investors are now eagerly anticipating comments from Federal Reserve Chairman Jerome Powell at the National Association for Business Economics (NABE) annual meeting later today, seeking clarification on the possible trajectory of US interest rate cuts. Presently, traders are factoring in a 97% likelihood of a 25 basis points rate cut in October and a 90% probability for a similar cut in December.