Gold hit a fresh all-time high at around $3,650 per ounce on Tuesday, supported by mounting expectations of Federal Reserve rate cuts through year-end. An unexpectedly weak US jobs report last Friday led markets to price in three rate cuts this year, including a 25bps reduction at the Fed’s meeting next week. Investors are now awaiting the US PPI and CPI data, due later this week, which could provide further guidance on the Fed’s next steps. Beyond rate expectations, safe-haven demand for the precious metal is also underpinned by uncertainty tied to US tariffs and geopolitical risks. Bullion has surged 39% so far this year, driven by US dollar weakness, strong central bank purchases, dovish monetary settings, and heightened global uncertainty.
WTI crude oil futures climbed above $62 per barrel on Tuesday, extending gains to a second day, following OPEC+'s modest output hike and due to concerns over potential new sanctions on Russian oil. OPEC+ agreed on Sunday to raise its crude production by 137,000 bpd from October, much lower than previous monthly hikes of about 555,000 bpd for September and August and 411,000 bpd in July and June. The smaller increase highlights the group’s cautious stance as the market heads into an expected surplus. Meanwhile, US President Donald Trump said on Sunday he was ready to move to the second phase of restrictions against Russia after its heaviest aerial strikes on Ukraine since the war began, fuelling worries about disruptions to global energy flows. However, gains in oil prices were limited after Saudi Arabia, the world’s largest crude exporter, lowered the price for all its crude grades to Asian buyers for delivery in October, signalling weaker demand.
