Bonds & Stocks
Gold’s unprecedented rally pushed higher on efforts by China to bolster its role in global bullion markets. Stocks paused an advance that lifted the S&P 500 to yet another record. Bullion powered toward $3,780 an ounce, putting the metal on track for its best month since 2020. The rally gained fresh momentum on Tuesday after Bloomberg reported that the People’s Bank of China is looking to be a custodian of sovereign reserves, courting friendly countries to buy bullion and store it within its borders.
Economy
Federal Reserve Governor Michelle Bowman said policymakers are in danger of falling behind the curve and need to act decisively to bring down interest rates as the labor market weakens. Bowman, the central bank’s top bank watchdog, also warned the Federal Open Market Committee may need to lower rates more quickly in the months ahead.
World
President Xi Jinping’s export engine has proved unstoppable during five months of sky-high US tariffs, sending China toward a record $1.2 trillion trade surplus. With access to the US curtailed, Chinese manufacturers have shown they aren't backing down: Indian purchases hit an all-time high in August, shipments to Africa are on track for an annual record and sales to Southeast Asia have exceeded their pandemic-era peak.