Gold extended its rally on Thursday to notch another all-time high, driven by strong safe-haven demand amid intensifying trade frictions, and expectations of further US monetary easing.
Fed Chair Jerome Powell’s recent comments highlighting a weakening labour market reinforced market conviction that the Federal Reserve will deliver a 25-basis-point rate cut later this month, followed by another in December.
The prospect of looser policy could also weigh on the dollar and Treasury yields, boosting gold’s appeal to foreign investors.
Trade tensions between Washington and Beijing continued to escalate. The expected meeting between Presidents Trump and Xi Jinping this month could play a crucial role in shaping market direction. While a renewed 90-day truce could boost investor sentiment and benefit riskier assets, any setback could further bolster gold’s recent rally.
Political instability added to the risk-off tone. France remains mired in its political crisis, while coalition turmoil in Japan has clouded Takaichi’s path to becoming the country’s prime minister, heightening uncertainty.
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