HSBC-Precious Metals Daily Gold surges on anticipated rate cuts；bulls in charge-20250926

<p style="text-indent:28px"><span style="font-size: 14px;">Market focus, emerging trends</span></p><p style="text-indent:28px"><span style="font-size: 14px;">After some initial losses, gold regained upward momentum in Asian and Londontrading. Trading volume was not heavy, however. The market absorbed fresh US tariffsand a possible US government shutdown, which did not seem to impact the financialmarkets greatly, but may have supported gold. Although there was acute “risk-off”activity, gold prices moved higher before the US open. Silver and the PGMs continuedto outperform gold as China demand remained robust.</span></p><p style="text-indent:28px"><span style="font-size: 14px;">In US hours, gold received support from the August PCE release. The Commerce Deptreported that Personal Consumption Expenditures rose 2.7% y/y. The market did notdeem this high enough to dissuade the Fed from making further rate cuts. Consumerspending also rose 0.6% in August, but again, this was not seen as high enough to bea stumbling block to rate cuts. Gold enjoyed a more substantial boost from commentsmade by Fed Governor Michelle Bowman, who reiterated her view that the Fed needsto cut rates to ward off a slowing labor market. Addressing the Forecasters Club ofNew York, she also said that she supported a smaller balance sheet. The DXY andyields also eased slightly. Higher oil prices as Ukraine hit Russian oil installationsfurther aided gold. The white metals outdid gold to the upside. A force majeure at amajor copper mine lifted that metal and triggered a sharp silver rally. Announcementsin China of the need to cut carbon emissions (Reuters), also pushed silver higher.The PGMs, notably platinum rallied as underlying tightness persisted.</span></p><p><br/></p>