PRECIOUS-Gold hits all-time high on safe-haven demand, Fed rate cut bets
By Ishaan Arora
Oct 7 (Reuters) - Gold hit a record high on Tuesday as there were no signs of a reprieve from an impasse between the two houses of the U.S. Congress that has led to a government shutdown, while near-certain bets of a U.S. rate cut this month also lent support.
Spot gold XAU= was up 0.1% at $3,962.63 per ounce by 0626 GMT, after hitting an all-time high of $3,977.19 earlier in the session. U.S. gold futures GCcv1 for December delivery gained 0.2% to $3,985.30.
"The (chances of) October and December cuts are still skewing above the 80% mark, so that's actually supporting gold prices and also this government shutdown as well, given there is still no resolution between the two sides of the U.S. Congress," OANDA senior market analyst Kelvin Wong said.
Kansas City Federal Reserve Bank President Jeff Schmid signalled he is disinclined to cut interest rates further, saying the Fed should stay focused on the danger of too-high inflation as opposed to apparent job market weakness.
Markets, however, are still pricing in additional 25 basis-point rate cuts in both October and December, with probabilities of 93% and 82%, respectively, according to the CME FedWatch tool.
Non-yielding gold thrives in a low interest rate environment and during economic uncertainties.
Gold has climbed 51% so far this year on strong central bank buying, increased demand for gold-backed exchange-traded funds, a weaker dollar and growing interest from retail investors seeking to hedge amid rising trade and geopolitical tensions.
Goldman Sachs on Monday raised its December 2026 gold price forecast to $4,900 per ounce from $4,300, citing strong Western exchange-traded fund inflows and central bank buying.
China's central bank added gold to its reserves in September for the eleventh straight month, data from the People's Bank of China showed.
Elsewhere, spot silver XAG= was steady at $48.49 per ounce, platinum XPT= fell 0.1% to $1,624.11 and palladium XPD= rose 0.8% to $1,329.63.
Reuters Terminal users can see related news and prices by clicking on the codes in brackets:
All precious metals headlines GOL
Precious metals market reports GOL/
European gold prices GOLD/EU1GOLD/EU20#PREC
London Bullion Market Association LBMA01
New York Comex gold 0#GC: and silver 0#SI:
New York platinum 0#PL: and palladium 0#PA:
Related Articles
UK August GDP: Economy & Assets—Set to Collapse?
TradingKey - The UK is scheduled to release its August GDP figures on 16 October, with the market widely anticipating a 0.1% month-on-month increase in real GDP (Figure 1). If this expectation is fulfilled, it will represent the UK economy’s third consecutive month of recovery, following two straigh
U.S. Banks Q3 Earnings Preview: Big 5 Banks See Double-Digit EPS Growth, Investment Banking Hits 4-Year High
TradingKey - The 2025 U.S. earnings season kicks off this week with results from major banks. Amid elevated investor sentiment and the Trump administration pushing for deregulation, analysts expect another strong quarter for the banking sector — driven by booming trading activity and a resurgence
U.S.–China Tariff Easing Sparks Crypto Rebound — Can Bitcoin Reclaim Its Peak?
The U.S. signals a softer stance on tariffs, helping Bitcoin reverse losses. Rate cut expectations may push BTC back toward $126,000.
FOMC October Meeting Minutes: How Should Investors Respond?
In the context of the U.S. government shutdown and a period of limited economic data, the Federal Reserve’s release of its latest monetary policy meeting minutes and officials’ statements on 8 October will be particularly significant.
Broadcom Q3 FY2025 Earnings Review: AI Surge and VMware Synergy Fuel Record Performance
TradingKey - Broadcom Inc. (NASDAQ: AVGO) delivered a strong fiscal Q3 2025, with results driven by AI networking strength and continued VMware integration. Revenue and EPS both topped expectations, reinforcing the company’s role as an essential player in the AI infrastructure buildout.
