Gold surged to a two-week high on Tuesday, climbing 2.4% to $3,413/oz, as post-holiday Chinese buying and fears of new U.S. tariffs on pharmaceuticals bolstered safe-haven demand. Investors now await the Federal Reserve’s policy meeting for clues on rate cuts, which could further sway the metal’s momentum.
Key Drivers:
- China’s Return: Markets reopened after the Labour Day holiday, with speculative inflows and central bank diversification from USD assets fueling gains.
- Tariff Jitters: President Trump’s plans for pharmaceutical tariffs (announced Monday) and 100% levies on foreign films added to economic uncertainty.
- Fed Watch: Focus shifts to Wednesday’s Fed decision—any dovish hints from Powell could propel gold toward $4,000/oz, per TD Securities.
Market Moves:
- Spot gold hit 3,413.29/oz∗∗,nearingitsApril22record(∗∗3,413.29/oz∗∗,nearingitsApril22record(∗∗3,500.05).
- U.S. futures (GCcv1) rose 3% to $3,422.80.
- Silver (+1.9%), platinum (+2.4%), and palladium (+3.1%) also rallied.
Gold Jumps 2% as China Demand, U.S. Tariff Fears Fuel Rally Ahead of Fed Decision