China Buys 1 Million Tons of U.S. Soybeans Ahead of Xi Visit 
China Exports Surge 25% in August as Trade Surplus Hits $119 Billion 
U.S. Stock Futures Steady as Oil Tops $100 Ahead of Inflation Data 
Iraq Seeks 6 Million Bpd OPEC+ Oil Quota 
Asian Stocks Fall as Oil Tops $100, Yields Rise 
UK Food Inflation Forecast to Hit 6.4% by Mid-2027 
Oil Prices Climb as Iran Threatens Gulf Energy Infrastructure 
Gold Prices Rise as Yen Rally Weakens Dollar 
South Korea GDP Surges on Chip and AI Boom 
ECB Rate Hike in Focus as Oil Tops $100 
German Inflation Accelerates to 2.9% in August 
Brent Oil Tops $100 as Middle East Conflict Threatens Supply 
Japanese Yen Nears Seven-Month High as Oil Approaches $100 
Iran Threatens Gulf Energy Assets as U.S. Tensions Escalate 
Japan GDP Growth Beats Forecast, Boosting BOJ Rate Hike Bets 
Gold Prices Steady Ahead of U.S. Inflation Data and Fed Decision 
Asian Stocks Mixed as AI Chip Rally Meets Oil Surge 
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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.
