WASHINGTON (dpa-AFX) - Gold surged to a new peak above $4,100 an ounce on Tuesday, driven by geopolitical uncertainties, escalating U.S.-China trade tensions and expectations for more interest-rate cuts by the U.S. Federal Reserve.
With the U.S. federal government's partial shutdown entering its 14th day, investors also await remarks on the economic outlook and monetary policy from Fed Chair Jerome Powell, who is due to speak at the National Association for Business Economics later in the day.
Spot gold was up 0.8 percent at $4,142.82 an ounce, after having hit a new record high of $4,179.71 earlier. U.S. gold futures were up 0.6 percent at $4,155.95.
France is in the middle of a profound political crisis that could have serious repercussions for the European Union's second-largest economy.
In Japan, the withdrawal of political party Komeito from the ruling coalition deepened the country's political turbulence.
Elsewhere, U.S. President Donald Trump is considering sending long-range Tomahawk cruise missiles to Ukraine, which would mark 'a new step of aggression' in Ukraine's war with Russia.
There is considerable uncertainty about trade tensions between the U.S. and China as both continue to spar on trade-related issues.
Both nations have imposed new port fees on each other's ships, threatening global shipping and trade flows.
China's commerce ministry said it remained open to talks, but the U.S. cannot seek dialogue while threatening new measures.
'If you wish to fight, we shall fight to the end; if you wish to negotiate, our door remains open,' according to an official statement.
Also, Beijing reportedly said it was Washington's expansion of curbs on Chinese firms in late September that ratcheted up tensions and drove it to further tighten its grip on the critical minerals.
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