investingLive Americas FX news wrap: Gold continues to rise above $3500

Key Takeaways:

• Gold rallied $62 to settle at $3,538, indicating strong safe-haven demand.
• The S&P 500 dropped 48 points to 6412, rebounding slightly from deeper lows.
• Economic data from the US, Canada, and beyond showed mixed signals.
• Oil prices swung aggressively, finishing the day at $65.64 per barrel.
• Political commentary, including comments on tariffs, added another layer of market tension.

Introduction

The trading week in the United States began with a clear risk-off sentiment, pushing gold to a record $3,538 per ounce. While equity indices broadly weakened, gold’s ascent underscored investors’ hunger for safe-haven assets following an array of economic and political developments.

Global Economic Indicators

US manufacturing updates brought mixed signals, with the August ISM index registering 48.7, slightly below early expectations. Construction spending in July dipped 0.1%, in line with forecasts. North of the border, Canada’s August S&P Global manufacturing PMI came in at 48.3, marking an improvement from 46.1 in the previous month. Meanwhile, central bank watchers took note of Goldman Sachs raising its US growth tracker to 1.7% for the third quarter, while the Atlanta Fed GDPNow forecast eased to 3.0% from 3.5%.

Market Movements

Equities took a momentary dive early in the session. The S&P 500, which had been closed for a holiday, sank more than 1.3% at one point before recovering. Despite the bounce back, it still ended 48 points down, finishing at 6412. Financials, transports, and tech stocks like Nvidia and Tesla all struggled, adding to broader concerns over market volatility.

Currency markets were equally turbulent, with the USD regaining ground after a brief pullback. USD/JPY, for instance, gave back half of its early-session gains before eventually marching higher.

Gold’s Record Rise

After dipping to $3,475 in early US trading, gold soared to $3,538 by day’s end. The climb confirmed a breakout above the consolidation range in place since April. Analysts pointed to widespread uncertainty, driving traders to seek the relative safety of gold.

Oil and Other Commodities

Oil staged a dramatic dance of its own: WTI crude initially reached $66.00, pulled back to $64.55, and then rebounded to close at $65.64 per barrel. The whipsaw pattern reflected persistent uncertainty surrounding global demand and potential supply constraints.

Political and Policy Context

Former President Donald Trump’s comments on tariffs, including a plan to address them through the Supreme Court, kept the political spotlight hot. Meanwhile, Trump also confirmed that Space Command would relocate to Alabama. In Europe, ECB board member Madis Muller hinted that stepping back from rate adjustments for now could be sensible, citing the need to monitor economic developments.

Conclusion

Tuesday’s trading spotlight was firmly on gold’s new highs, underscoring a market increasingly influenced by macroeconomic data, monetary policy signals, and political commentary. As investors recalibrate in response to fluctuating equity performance and a reinvigorated safe-haven trade, the broader outlook remains as dynamic as the day’s swings suggest.