WASHINGTON (dpa-AFX) - Gold scaled a new peak on Wednesday amid renewed China-U.S. trade tensions, U.S. government shutdown worries and renewed optimism that the U.S Federal Reserve may go for further interest-rate cuts.
Spot gold traded up 0.9 percent at $4,180.29 an ounce in European trade, after having hit a new record high of $4,218.32 earlier. Gold futures for December delivery were up 0.9 percent at $4,201.71.
On the trade front, U.S. Trade Representative Jamieson Greer said there was still a chance to resolve a dispute over critical minerals restrictions and it is up to China whether the planned 100 percent tariffs on its exports would take effect on November 1 or sooner. He added that a Trump-Xi meeting was still planned but not yet confirmed.
Separately, President Donald Trump said that the United States must be careful with China although the relationship between the countries is fair.
The dollar held losses following dovish remarks from Fed Chair Jerome Powell and President Trump's comments defending his tariff policy against BRICS members, claiming the bloc was 'an attack on the dollar'.
Meanwhile on Tuesday, Federal Reserve Chair Jerome Powell signaled two more quarter-point interest-rate cuts this year, citing a sharp slowdown in hiring.
However, he cautioned that 'there is no risk-free path for policy as we navigate the tension between our employment and inflation goals.'
Fed Boston President Susan Collins also said it's prudent to lower rates this year to support the labor market.
Swap contracts currently price in roughly 1.25 percentage points of rate cuts by the end of next year, from the current range of 4-4.25 percent.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
