Gold Holds Near Record as Traders Weigh Fed, Russian Tensions

Gold traded just below a record after a three-day advance, as investors assessed a raft of commentary from Federal Reserve policymakers including Chair Jerome Powell, and geopolitical tensions over Russia.

Bullion was steady near $3,761 an ounce, about $30 shy of Tuesday’s peak, which was the third consecutive trading day it’s set a fresh high. On Tuesday, Powell said the outlooks for the labor market and inflation faced risks, and offered no hint if he might support another interest rate cut in October. Still, Governor warned the bank may need to ease more quickly in the months ahead as the labor market weakens.

Gold and silver have been among this year’s best-performing major commodities on a broad confluence of supportive factors, including last week’s Fed rate cut, as well as robust central-bank demand. On Tuesday, prices climbed as much as 1.2%, after Bloomberg News China has plans to become a custodian of foreign sovereign bullion reserves.

Elsewhere, gold has seen support from strong demand for exchange-traded funds, with inflows hitting a three-year high on Friday. So far this year, bullion-backed ETF holdings have risen every month apart from May, expanding by almost 400 tons, according to data compiled by Bloomberg.

On the geopolitical front, President Donald Trump said NATO nations should shoot down that violated their airspace, while also striking a more sympathetic tone on Ukraine’s chances of winning the war. “Yes, I do,” Trump said when asked if he thinks NATO allies should take down Moscow’s aircraft, during a meeting on the sidelines of the UN General Assembly in New York.

Looking ahead, traders will focus on the US personal consumption expenditures price index that’s due on Friday. The Fed’s preferred measure of underlying inflation likely last month, which would boost the argument for rate cuts, potentially aiding non-yielding bullion.

Spot gold was steady at $3,760.70 an ounce at 8:16 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver was steady after topping $44 an ounce on Tuesday, while platinum was little changed and palladium edged lower.