Gold Hits $3,501 on Dollar Drop China AI Surge
Gold Hits Record $3,501 as Markets React to US Dollar and AI Surge in China
Gold prices soared to a new all-time high of $3,501.59 per ounce during early trading in Asia on Tuesday, surpassing the previous record of $3,500.10 set in April. The surge comes as investors digest a weaker US dollar and the possibility of upcoming interest rate cuts by the Federal Reserve.
Meanwhile, Chinese markets enjoyed a boost following impressive corporate earnings. Alibaba shares jumped nearly 20 percent on Monday after reporting strong results, particularly driven by AI-related revenue, and added another 0.5 percent on Tuesday.
The surge in Alibaba helped lift the Hang Seng Index by 2.2 percent on Monday, with a further 0.1 percent gain on Tuesday, while the Shanghai Composite also edged higher. Positive momentum was supported by China’s Purchasing Managers’ Index, a key gauge of industrial activity, which showed growth on Monday.
“While US tech giants face rising questions over AI monetization and high valuations, Chinese firms are seeing a clear earnings lift from AI and cloud services,” said Charu Chanana of Saxo Markets.
In Japan, the Nikkei 225 fell 1.2 percent on Monday as semiconductor stocks came under pressure, though it recouped some losses on Tuesday. South Korea’s Kospi also moved higher, with SK Hynix and Samsung Electronics recovering from earlier declines amid concerns about their Chinese chip plants.
Wall Street remained closed on Monday for Labor Day, with the dollar trading mixed against major currencies. US markets had retreated from record highs on Friday after a key inflation reading indicated faster-than-expected price growth, raising questions about the Federal Reserve’s next moves and independence.
Market Snapshot (as of 0300 GMT)
Tokyo – Nikkei 225: Up 0.3% at 42,292.88
Hong Kong – Hang Seng: Up 0.1% at 25,644.02
Shanghai – Composite: Up 0.8% at 3,839.97
New York – Dow: Closed Monday (Labor Day)
Euro/USD: Down at $1.1697 (from $1.1705)
Pound/USD: Down at $1.3529 (from $1.3547)
Dollar/Yen: Up at 147.58 (from 147.27)
Euro/Pound: Up at 86.46 pence (from 86.57)
Brent Crude: Up 0.5% at $68.46 per barrel
WTI: Up 1.5% at $64.96 per barrel
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