Gold Hits New Records as Traders Await Powell’s Speech.
Gold surges to fresh record highs; markets await Powell’s remarks.
Gold prices extended their rally on Tuesday, scaling fresh record highs as safe-haven demand strengthened, driven by renewed caution from Federal Reserve officials over the outlook for rate cuts.
Powell speech in focus
On Monday, several Fed policymakers voiced concern about the pace of monetary easing. Atlanta Fed President Raphael Bostic said he opposed an October rate cut, citing persistent inflationary pressures, while Cleveland Fed President Beth Hammack similarly argued that policy was not yet restrictive enough. Neither official is currently on the Fed’s rate-setting committee.
By contrast, board member Stephen Miran—who joined just a week ago—reiterated his call for significantly deeper rate reductions, aligning with former President Trump’s stance. Miran was the lone dissenter at last week’s meeting, where he favoured a 50-basis-point cut instead of the 25-bps approved.
Markets are now awaiting Fed Chair Jerome Powell’s remarks later in the session for further policy cues.
In terms of data, September’s U.S. PMI readings are also due today, expected to show a modest slowdown in both manufacturing and services. The figures could heighten concerns about a cooling economy. The week’s main release, however, will be Friday’s PCE price index—the Fed’s preferred inflation gauge—forecast to show inflation staying sticky in August, with core readings above the 2% target. Ahead of that, investors will also parse the final estimate of Q2 GDP, after earlier reports revealed stronger-than-expected growth despite tariff-related pressures.
