Gold Hits Record High as USD Weakens
Forex Today: Gold Hits New Record Above $4,240, Markets Await Central Bank Guidance
Gold surged to a fresh all-time high above $4,240 early Thursday, extending Wednesday’s 1.5% rally as traders continued to favor safe-haven assets amid US political and trade uncertainty. The metal later eased slightly but stayed firm above $4,200, maintaining bullish momentum heading into the European session.
With the US government shutdown delaying key data releases, traders now turn their focus to central bank commentary from the Federal Reserve, European Central Bank (ECB), and Bank of Canada (BoC) for fresh clues on monetary policy direction.
US Dollar Performance This Week
The table below shows the percentage change of the US Dollar (USD) against major currencies this week. The USD was weakest versus the Swiss Franc (CHF).
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|
| -0.28% | -0.48% | -0.56% | 0.30% | 0.10% | 0.05% | -0.62% |
The heat map shows percentage changes of major currencies against each other. The base currency is on the left, and the quote currency is on the top.
US Dollar Weakens as Trade Tensions Linger
The US Dollar Index (DXY) remains under pressure, hovering just above 98.50 after losing 0.4% on Wednesday. Despite comments from US Treasury Secretary Scott Bessent suggesting Washington does not seek to “decouple” from China, traders remain cautious amid talk of new trade barriers.
Fed Governors Christopher Waller and Michelle Bowman are scheduled to speak later today, potentially offering further insight into the Fed’s near-term rate outlook.
UK GDP Rebounds Slightly in August
The UK economy grew by 0.1% in August, matching expectations and reversing July’s small contraction. Industrial and manufacturing output both improved, rising 0.4% and 0.7% respectively.
Following a 0.6% gain on Wednesday, GBP/USD holds steady above 1.3400 in early European trading.
Euro Awaits Lagarde Speech at IMF Panel
EUR/USD trades around 1.1650, consolidating recent gains ahead of ECB President Christine Lagarde’s appearance at the IMF’s Global Economy Debate, where policymakers will discuss “economic policies amid disruptive change.”
Aussie Struggles as Jobless Rate Rises
Australia’s unemployment rate ticked up to 4.5% in September from 4.3%, while job creation of +14.9K missed forecasts. RBA Assistant Governor Christopher Kent said recent rate cuts have eased financial conditions and reaffirmed that policy decisions will depend on upcoming data.
AUD/USD trades around 0.6500, slightly lower on the day.
Yen Steady After Official Remarks on FX Volatility
Japan’s Finance Minister Katsunobu Kato reiterated that authorities are watching for “excessive” market movements. USD/JPY holds near 151.00, stabilizing after a 0.8% decline over the past two days.
Loonie Flat Ahead of BoC Speech
USD/CAD continues to trade just below 1.4050, moving sideways as traders await remarks from Bank of Canada Governor Tiff Macklem later in the day.
