Gold Surges on Fed Rate Cut Speculation While Oil and Stocks Falter

Precious metals rallied as markets priced in a potential Federal Reserve rate cut by September. Spot gold neared its all-time high above $3,500/oz, while silver breached $40 for the first time since 2011. The MOVE reflects growing haven demand amid political pressure on the Fed and trade policy uncertainty.

The dollar weakened against major currencies ahead of key labor data, with traders anticipating soft numbers could accelerate its decline. Meanwhile, China's conflicting factory activity reports highlight persistent economic divergences impacting global trade flows.

Oil markets extended August losses as oversupply concerns outweighed geopolitical risks. The commodity's struggle contrasts sharply with gold's ascent, underscoring shifting capital allocations in anticipation of monetary policy shifts.