Gold & Precious Metals Soar, Dollar Weakens
Gold prices briefly hit a record high on Tuesday (September 2nd), driven by speculation of a US interest rate cut and uncertainty surrounding President Trump's trade tariffs. Spot gold rose 0.8% to $3,508.54 per ounce, while the December gold contract briefly reached $3,578.20 per ounce.
Uncertainty over Trump's tariffs intensified after an appeals court ruled some of them illegal, but they could remain in effect until mid-October. President Trump criticized this decision and plans to take the case to the Supreme Court, prompting investors to seek refuge in precious metals.
Market speculation that the Federal Reserve will cut interest rates by 25 basis points in September has weakened the dollar to a five-week low. This situation supports precious metals, as non-interest-bearing assets like gold become more attractive compared to government bonds.
Besides gold, other metals also rose significantly. Silver approached a 14-year high, platinum nearly touched an 11-year high, and copper prices also rose after disappointing Chinese PMI data fueled expectations of further stimulus from Beijing.
This trend indicates that investors are still aggressively turning to precious metals and copper, both as a hedge against global economic uncertainty and as a speculative profit, even though US inflation remains high and raises monetary policy uncertainty. (ayu)
Source: Newsmaker.id
