Gold climbed to a fresh all-time high in Asian trading on Tuesday, reaching $3,654 an ounce around 02:30 GMT. The yellow metal is reaffirming its role as a safe-haven asset, buoyed by expectations of U.S. Federal Reserve rate cuts, inflation concerns, and political uncertainty in France and Japan.
“Gold provides the clearest expression of market doubts. Its performance suggests that investors are not fully convinced the Fed can slash rates aggressively without losing control of prices. It acts as insurance against stagflation and excessive monetary easing,” said Stephen Innes of SPI Asset Management.
In Tokyo, the Nikkei index broke through the 44,000-point mark for the first time, hitting an intraday record of 44,074.35 points before easing slightly to 43,703, up 0.16% around 02:20 GMT. Other Asian markets followed suit: Seoul rose 0.82%, Taipei jumped 1.20%, and Hong Kong’s Hang Seng gained 1.05%, while Sydney slipped 0.4%.
Overall, Asian equities tracked gains from Wall Street, boosted by weaker-than-expected U.S. jobs data last week that reinforced expectations of a looser Fed policy. Analysts are now forecasting up to three rate cuts by the end of the year, a prospect seen as supportive for global markets.
In Japan, sentiment was further bolstered by hopes of stronger economic stimulus following the weekend resignation of Prime Minister Shigeru Ishiba. Still, uncertainty over his succession could fuel volatility, cautioned Keita Yamaguchi of Monex Securities.
Meanwhile, oil prices continued to firm despite OPEC+ production increases. Around 02:45 GMT, U.S. WTI crude rose 0.51% to $62.58 a barrel, while Brent crude gained 0.53% to $66.37.
With AFP
Comments