Gold Surges to Record Highs as Traders Bet on Dovish Fed Policies and Currency Moves

The price of gold surged to a new all-time high above $5,500 an ounce on September 2nd, 2022, as investors continued to bet on further monetary easing from the US Federal Reserve and a weak US dollar. The precious metal's breakneck rally was also fueled by geopolitical tensions and currency moves.

BlackRock's Rick Rieder, a leading candidate to become the next Federal Reserve chair, has been a key figure in the markets' expectations for more rate cuts. Rieder, who is known for his dovish stance on monetary policy, has gained momentum in his bid to succeed Jerome Powell. Bond futures traders have ramped up bets on a dovish policy shift at the Federal Reserve in response to Rieder's candidacy.

Gold's surge came as the US dollar weakened against major currencies. US President Donald Trump's relaxed tone about the dollar's selloff has fueled speculation that the US currency is at the start of a longer-term decline. Japan's retail investors unwound bullish bets in the yen during the height of a recent rally, potentially capping its gains as talk of official intervention buoyed the currency.

Meanwhile, in the commodities market, gold's rally was also influenced by geopolitical tensions and currency moves. Saudi Arabia is poised to buy gold from war-torn Sudan, potentially taking a share of the lucrative market from the United Arab Emirates as a dispute simmers between the two Gulf powers.

The BBC announced plans to better reflect working-class audiences around the UK, following an independent review that found the broadcaster could do more to represent their experiences. In the financial markets, US small-cap stocks are having something of a moment, and Wall Street doesn't expect it to end any time soon. South Korean regulators plan to approve high-risk single-stock exchange-traded funds, supporting the bourse's push to diversify products and allowing retail investors more leveraged bets.

In Europe, Germany has canceled its remaining 2026 offshore wind auctions after the last round in August failed to attract bids. The industry has lobbied for better terms, and Germany plans to launch new auctions in 2027.

Sources:
1. Traders Bet on More Rate Cuts If Rick Rieder Leads the Fed
2. BBC vows to better reflect working-class audiences around UK
3. Gold Climbs to Record Above $5,500 on Bets for Dovish Fed Chair
4. Wall Street Bets a Rally in Riskiest Stocks Has Staying Power
5. Japanese Retail Traders Placed Contrarian Yen Bets as It Soared
6. Trump’s Embrace of Weaker Dollar Fuels Bets on New Downtrend
7. Saudi-UAE Spat Finds New Front in Lucrative Sudan Gold Shipments
8. Germany Cancels 2026 Offshore Auctions, Plans New Design in 2027
9. Korea to Allow Leveraged Single-Stock ETFs to Lure Retail Money
10. Bond Traders Target Dovish Fed Pick as Rieder’s Momentum Builds