WASHINGTON (dpa-AFX) - Gold scaled another record peak on Thursday after gaining more than 1.5 percent in the previous session.
Spot gold was up 0.6 percent at $4,232.75 an ounce, after having hit a new record peak at $4,241.99 earlier on safe-haven demand due to U.S.-China tensions and surging bets over a Federal Reserve rate cut. U.S. gold futures were up a little over 1 percent at $4,244.61.
Sino-U.S. tensions remained on investors' radar after U.S. Treasury Secretary Scott Bessent slammed Beijing's rare earth export curbs as 'China versus the world,' vowing that Washington and its allies would 'neither be commanded nor controlled.'
U.S. Trade Representative Jamieson Greer called China's new rare earth export restrictions 'a global supply-chain power grab,' while Trump stated that the United States is in a trade war with China.
Meanwhile, with the U.S. government shutdown causing postponement of key data releases, investors await comments from central bankers for additional clues on the rate trajectory.
The dollar dropped as the U.S. Senate failed again to advance a House-passed measure to fund the government and Federal Reserve Chair Jerome Powell highlighted risks to the labor market.
Fed Governor Stephen Miran added to the dovish signals, warning that the latest impasse in trade talks between the U.S. and China poses new dangers to the economic outlook. He called for quicker and more decisive rate cuts to support the economy.
Markets are currently pricing in a 25-basis point Fed rate cut at the Oct. 28-29 policy meeting, with another cut expected in December.
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