Gold Steady as Investors Eye Friday’s Inflation Data
Gold prices remain steady as investors await a key economic release on Friday: the personal consumption expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge. Spot gold is trading near $3,400 an ounce, while December futures sit around $3,447.
Market participants are largely pricing in a September rate cut, with CME FedWatch showing roughly 88% odds, but Fed officials are signaling caution and want to see incoming data first. July’s headline PCE is expected to hold steady at about 2.6% year-over-year. The core reading, which excludes volatile food and energy components, is forecast to rise roughly 0.2% month-over-month and 2.7% year-over-year.
Other precious metals showed mixed moves: silver ticked up modestly, while platinum and palladium remained relatively unchanged.
Trump’s Attempt to Fire Fed Governor Rattles Markets, Lifts Gold
In an unprecedented development, President Trump announced an attempt to remove Federal Reserve Governor Lisa Cook, citing unproven mortgage fraud allegations. Cook has engaged counsel and is contesting the action, calling it illegal.
The announcement had an immediate market impact: the dollar index slipped about 0.3% and stock futures softened. For gold investors, the episode reinforces the metal’s appeal as a safe-haven asset with no counterparty exposure. Gold has rallied strongly this year, and concerns about central bank independence have added upward momentum. Other asset classes such as real estate and commodities have also seen buying interest, while cryptocurrency markets remain volatile.
Japan’s Central Bank Flags U.S. Tariff Risks
Bank of Japan board member Junko Nakagawa warned that lingering uncertainty around U.S. trade policy and tariffs could undermine business confidence in Japan and beyond, potentially weighing on global growth. Corporate sentiment will be monitored closely when Japan releases its quarterly “tankan” survey on October 1, which will indicate how firms are coping with trade and economic uncertainty.
The BOJ faces a delicate policy balance. After moving away from massive stimulus, the central bank raised its policy rate to 0.5% earlier this year, and about two-thirds of surveyed economists expect another quarter-point hike before year-end. At the same time, persistent food inflation and rising wages risk keeping consumer prices elevated.
Nvidia Crushes Earnings, But Bubble Talk Grows Louder
Nvidia reported another standout quarter, with revenue jumping about 47% year-over-year, and CEO Jensen Huang describing the surge in demand for AI chips as the start of a new industrial era. Cloud providers and enterprise customers are driving vigorous demand for accelerators.
But some analysts warn of parallels to previous tech bubbles: lofty valuations, heavy capital flows into a narrow sector, and a potential gap between AI hype and immediate, broad-based productivity gains. If sentiment toward AI-exposed stocks cools sharply, risk assets could correct, increasing demand for traditional safe havens such as gold.
Fidelity: Gold’s Bull Market Has Room to Run
Fidelity International’s Ian Samson says he does not expect the gold rally to end soon. With the metal up roughly 27% this year, some Fidelity funds have increased their gold allocations—moving from a typical 5% allocation to around 10%—positioning for further gains.
The bullish case rests on a combination of factors: falling interest-rate expectations, sticky inflation, slowing economic growth, and a softer dollar. Continued central bank purchases—notably from China, India and Turkey—paired with constrained supply also support higher prices. Samson suggests these dynamics could drive gold toward $4,000 by late 2026, drawing parallels to the prolonged bull market seen from 2001 to 2011 when gold produced strong annual returns.
In short, many investors and strategists view the current gold rally as having room to continue as macro and geopolitical risks persist.