UK PM Burnham to Unveil Economic Vision at Labour Conference 
China Consumer Stocks Near Decade Lows as AI Shares Surge 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
South Korea Tax Windfall Could Top 50 Trillion Won on Chip Boom 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Trump, Xi Focus on Trade and AI at White House Summit 
Europe’s AI Data Centre Boom Strengthens Case for Nuclear Power 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
Add as a preferred source on Google
On Wednesday, gold prices hovered below the flatline after hitting a fresh record high in Asian trading. By 07:07 ET (11:07 GMT), spot gold was down 0.03%, trading at $2,656.24 per ounce. Earlier in the session, the precious metal reached an all-time high of $2,670.43 an ounce.
Interest Rate Prospects and Middle East Tensions Boost Gold
Andrzej Barabasz, CC BY-SA 4.0, via Wikimedia Commons
The prospect of declining interest rates supported gold, as traders priced in a reduced opportunity cost for investing in non-yielding assets. Tensions in the Middle East, following Israeli strikes in southern Lebanon, also increased demand for the safe-haven asset. Furthermore, China’s recent economic stimulus measures added further support to gold prices, as supported by an article from BBC.
Market Awaits Fed Commentary and Inflation Data
Traders are closely watching Federal Reserve officials' comments and the release of the central bank's preferred inflation gauge on Friday for clues about U.S. monetary policy. Citi analysts predict 125 basis points in rate cuts by the Fed this year, while Goldman Sachs anticipates 25 basis point cuts at each meeting from November through June 2025.
Contrasting Views on Rate Cuts and Gold’s Future
Fed Governor Michelle Bowman cautioned against steep rate reductions, noting that key inflation indicators remain “uncomfortably above” the Fed’s target, according to an article from CNBC. Her stance contrasts with other Fed officials who argue that rate cuts are needed to ease economic pressures.
The authors are unknown, but the pictures belong to the Alliance for Responsible Mining., CC BY-SA 4.0, via Wikimedia Commons
"The scenario outlined by Ms. Bowman, while possible and gold bearish, is not one adopted by gold investors who, by initiating repeated record highs, are showing faith in more rapid rate cuts and what that means for gold," wrote HSBC analysts.
