Gold prices pushed higher during Asian trade on Tuesday, notching fresh all-time highs above the US$3,750 mark, as traders took profits ahead of United States economic data and remarks from Federal Reserve Chair Jerome Powell.
By 3:40 pm AEST (5:40 am GMT), spot gold was up $9.91, or 0.3%, at US$3,756.46 per ounce.
Investors paused to reassess positions before the release of S&P Global’s flash U.S. Manufacturing and Services PMI data, alongside Powell’s scheduled appearance at the Greater Providence Chamber of Commerce Economic Outlook Luncheon in Rhode Island.
Both will be closely parsed for fresh guidance on the Fed’s policy trajectory.
The central bank last week delivered a cautious rate cut, and Fed officials have since offered mixed signals.
New Governor Stephen Miran warned on Monday that the Fed risks damaging the job market unless it cuts rates more aggressively, while policymakers Raphael Bostic, Beth Hammack and Thomas Barkin urged caution given persistent upside risks to inflation.
Gold has been buoyed by expectations of further Fed easing, alongside safe-haven demand stemming from geopolitical risks and concerns about U.S. fiscal debt.
Tensions in Europe remain high after Russian jets flew over Estonian airspace last week, with drones and fighter aircraft also entering Poland and Romania in recent days.
Looking ahead, consensus forecasts see the U.S. Manufacturing PMI slipping to 52 in September from 53 in August, with the Services PMI expected to decline to 53.9 from 54.5.
