Spot Gold extended gains to a new all-time high of $4,497.55/oz. on Tuesday, underpinned by expectations of further policy easing by the Federal Reserve and rising geopolitical tensions.
The latest US macro data pointed to moderating inflation and a cooling labor market, giving the Fed more scope to lower rates.
FOMC policy makers signaled just one 25 bps rate cut for next year, while investors continue to expect two rate cuts of 25 basis points each.
The safe-haven allure of the metal has also been heightened by mounting tensions between the US and Venezuela. The US reportedly moved against another vessel near Venezuelan waters following the seizure of two oil tankers this month.
Market players now await the second estimate of US GDP growth for Q3, due later today, for more guidance on the Fed’s monetary easing trajectory.
Spot Gold was last up 0.94% on the day to trade at $4,485.31 per troy ounce.
Strong central bank buying, US tariff policies, potential rate cuts by the Federal Reserve, robust ETF inflows and geopolitical uncertainty have fueled Gold’s rally to a series of record highs this year.
Central banks are set to buy 850 tons of gold in 2025, compared to 1,089 tons in 2024, according to Metals Focus.
Physically-backed gold ETFs are on track for their most sizable inflow since 2020, attracting $82 billion so far in 2025, according to World Gold Council data.
Year-to-date, the yellow metal has surged 70.92%, set to register its best annual performance since 1979.
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