Gold, Silver Hit Record Highs as Powell Signals Rate Cut
Forex Today: Gold and Silver Surge to Record Highs as Powell Signals October Rate Cut
Gold and silver extended their record-breaking rally on Wednesday after Federal Reserve Chair Jerome Powell hinted that a rate cut could come as early as October, boosting risk sentiment and sending the U.S. Dollar lower.
Powell’s comments suggested the Fed is preparing to ease policy further, with markets now pricing in a 0.25% rate cut this month and another in December, according to the CME FedWatch tool. U.S. Treasury yields fell sharply, with the 2-year yield hovering near long-term lows, reflecting rising expectations of looser monetary conditions.
Gold soared to a fresh all-time high of $4,190 during the Asian session, breaking cleanly through the $4,000 level with little resistance. Silver followed suit, surging past the $50 mark to reach $53.62, its highest level ever and well above the historic 1980 “Hunt Brothers” peak.
Platinum and Palladium also climbed, with Palladium touching a new two-year high. Traders looking for exposure beyond futures can access these metals via the PPLT and PALL ETFs, respectively.
Momentum and trend traders remain bullish on the precious metals complex, while risk assets gained across the board. U.S. stock indices extended their recovery — the S&P 500 and NASDAQ 100 both showing strong upward momentum.
In the Forex market, the Australian Dollar (AUD) is the day’s strongest major, while the New Zealand Dollar (NZD) lags. The USD/JPY pair remains in focus after triggering buy signals at several trend-following funds.
No major economic data releases are scheduled for today, leaving markets to trade primarily on sentiment and Fed expectations.
