Gold prices surged significantly on Wednesday as investors seek out safe-haven assets amid prospects of a rate cut by the Federal Reserve.
During the Asian trading session, London spot gold prices briefly approached 3,547 U.S. dollars per ounce during intraday trading, while gold futures on the New York Mercantile Exchange briefly surpassed 3,616 U.S. dollars per ounce, both marking historic new highs.
A recent report released by analysts at Morgan Stanley has projected that the Fed will announce a 25 basis point rate cut at its September meeting, followed by another cut before the end of the year. Historical data indicates that in the two months following the initiation of a rate cut cycle by the Fed, gold and silver typically experience significant increases, with gold prices on average rising by approximately 6 percent.
Meanwhile, Fed Chairman Jerome Powell's recent dovish stance has considerably bolstered expectations of a rate cut in the market, leading to the recent increase in precious metal prices.
On Sept 5, the U.S. Bureau of Labor Statistics (BLS) will release the non-farm payroll data for August. Previously, the BLS significantly revised down the non-farm payroll data for May and June by 258,000, far beyond market expectations, causing severe turmoil in the U.S. capital markets as the dollar and U.S. stocks plummeted, while U.S. bonds and gold rapidly strengthened.
Gold prices surge to record highs amid escalating safe-haven demand
China welcomes all like-minded countries to join the Group of Friends of Global Governance (GFGG) and is ready to work with the international community to advance reform and improvement of global governance and jointly address global challenges, said Chinese Foreign Ministry spokeswoman Mao Ning in Beijing on Wednesday.
Mao was speaking at a regular press conference in response to a question about the Group of Friends of Global Governance, which was launched in Geneva on February 27. In September 2025, Chinese President Xi Jinping formally proposed the Global Governance Initiative, contributing China's wisdom and solutions to building a more just and equitable global governance system. Since its launch, the initiative has received support from more than 150 countries and international organizations, Mao said.
"In December last year at the UN Headquarters in New York, China proposed to establish the "Group of Friends of Global Governance," which has been warmly received at the UN," she said.
Geneva is an important hub of global governance, home to many UN entities and specialized agencies that address agendas vital to countries’ development and people’s livelihood, Mao said.
"On February 27, China held the launch ceremony of the "Group of Friends of Global Governance" in Geneva. Representatives from nearly 60 countries attended the meeting, including 42 founding members of the GFGG. Parties expressed strong recognition and support for the GGI, commended China's leading role in global governance, and looked forward to the GFGG strengthening communication and coordination and promoting dialogue and cooperation on the Geneva platform," she said. The establishment of the GFGG in both New York and Geneva, and its rapid progress, reflect that the Global Governance Initiative proposed by President Xi meet the needs of the world and conform to the will of the people, said the spokeswoman.
"As the noble cause of peace and development for humanity is confronted with severe challenges, it is more imperative than ever for us to recommit to the founding mission of the UN, uphold multilateralism, defend international fairness and justice, and work for peace, stability and development. China welcomes the participation of all countries sharing the same vision, and through the launch of the GFGG stands ready to work with the international community to explore pathways for reforming and improving global governance, jointly tackle global challenges and build a community with a shared future for humanity," she said.
China welcomes like-minded countries to join Group of Friends of Global Governance: spokeswoman
