Gold Soars Above $4,200 as Traders Bet on Fed Rate Cuts and US-China Tensions Heat Up
Gold prices continued to climb sharply, breaking past $4,200 per ounce and hitting a fresh record high. The metal gained around 0.7%, as investors rushed toward safe assets amid global uncertainty.
The main reason behind gold’s rise is growing belief that the US Federal Reserve will cut interest rates soon. Markets expect a 25 basis-point rate cut in October, followed by another in December. Lower interest rates usually make gold more attractive because it doesn’t pay interest, but its value tends to rise when returns from other assets fall.
At the same time, rising tensions between the US and China have increased demand for safe-haven assets. Trade disputes, export restrictions, and tariff threats have made investors more cautious, pushing gold prices even higher.
The rally is also supported by strong demand from central banks and gold ETFs, along with concerns over a possible US government shutdown, which could hurt confidence in the economy.
So far in 2025, gold has shown strong momentum, with analysts expecting it could reach $4,400 per ounce if current trends continue.
Impact :
Gold might keep rising if the Fed cuts rates and geopolitical tensions grow.
Safe-haven buying could remain strong, keeping gold prices volatile but bullish.
