Gold prices saw modest gains by midday on Tuesday but have retreated from the record highs reached during early U.S. trading. December Comex gold futures hit an all-time high of $2,570.40 before easing slightly. Meanwhile, silver prices have also inched up after reaching a four-week peak earlier in the day. The rise in precious metals is driven by bullish market charts and strong safe-haven demand, particularly from China. As of the latest figures, December gold was up $5.40, trading at $2,546.70, while September silver increased by $0.151, standing at $29.455.
In an email update this morning, broker SP Angel noted, “Chinese exporters and traders are actively purchasing yuan and likely gold, anticipating further weakening of the U.S. dollar. The metal has also been supported by Chinese buying following the central bank’s restrictions on local government bond purchases. Ongoing issues in China’s property sector have made gold a favored option for personal savings in the country.”
On Tuesday, China opted to maintain its primary interest rates at the latest meeting of the People’s Bank of China.
Market participants are now turning their attention to the upcoming Jackson Hole Federal Reserve symposium, set to begin later this week. Historically, this event has seen significant market movements following announcements from central bank officials. Fed Chairman Jerome Powell is expected to deliver remarks that may offer insights into the timing of a potential U.S. interest rate cut.
In broader markets, the U.S. dollar index has declined, hitting a seven-month low, while Nymex crude oil prices have softened, trading around $74.00 per barrel. The benchmark 10-year U.S. Treasury note currently yields approximately 3.85%.
Looking ahead, the next major U.S. economic indicator will be the release of the minutes from last week’s Federal Open Market Committee (FOMC) meeting, scheduled for Wednesday afternoon.
