“Gold prices hit record high, exceeding $3500 per ounce amid uncertainty over Trump’s tariffsGold prices reached a record high of $3508.54 per ounce due to uncertainty over Trump’s tariffs and expectations of US interest
rate cuts. Silver and platinum also rose, while the dollar fell to a five-week low.
”, — write: unn.ua
DetailsMetal prices in general also rose significantly, with silver soaring to a nearly 14-year high, while platinum remained on the verge of an 11-year high. This came as the dollar fell to a five-week low amid expectations of US rate cuts.
Spot gold prices rose 0.8% to a record high of $3508.54 per ounce, while December gold futures peaked at $3578.20 per ounce. Spot prices somewhat curbed gains, trading 0.5% higher at $3494.56 per ounce by 01:25 ET (05:25 GMT).
The latest rise in gold prices was driven by increased uncertainty over Trump’s trade tariffs after an appeals court last week ruled them illegal.
Although the appeals court said Trump’s tariffs could remain in effect until mid-October, the president criticized the decision and said he would appeal it to the Supreme Court.
This development has fueled increased uncertainty about the economic impact of Trump’s tariffs, much of which took effect in August. Any decision against the tariffs would also force Washington to renegotiate recent agreements with major trading partners.
Gold reaches two-week high: what’s the reason?26.08.25, 10:16 • 4260 views
The persistent course towards rate cuts in September also contributed to the increase in gold prices, even though data released last week showed that inflation remains volatile.
As CME Fedwatch showed, markets priced in an almost 85% probability of a 25 basis point cut by the Federal Reserve in September.
This came even as July PCE price index data showed that inflation remains volatile and above the Fed’s annual target of 2%.
Fed Chair Jerome Powell signaled earlier in August that the Fed was considering a 25 basis point rate cut in September, but has so far not committed to doing so due to concerns about volatile inflation.
Nevertheless, the prospect of rate cuts pushed the dollar to a five-week low and supported metal prices. Non-yielding assets such as metals tend to benefit from rate cuts, given that they make commodities more attractive than investing in government debt.
Among broader metal prices, spot silver rose 0.1% to $40.7545 per ounce, having previously surpassed the $40 level for the first time since late 2011.
Spot platinum rose 0.7% to $1421.55 per ounce and was on the verge of a recent 11-year high.
Silver and platinum have outperformed gold in recent months, as relatively depressed prices per ounce, along with some consolidation in gold, have sparked speculative fervor around both metals.
Among industrial metals, copper prices remained optimistic, as somewhat disappointing purchasing managers’ index data from leading importer China fueled expectations of further stimulus measures from Beijing.
London Metal Exchange copper futures rose 0.3% to $9,919.0 per tonne, while COMEX copper futures rose 0.4% to $4.5905 per pound.
AdditionOn Monday, gold prices rose to a more than four-month high of almost $3552 per ounce in Asian trading. This came amid hopes for a Federal Reserve rate cut this month. At the same time, the Fed’s independence and concerns about US tariffs increased demand for bullion as a safe haven.