Gold holds near record high, Fed rate cut bets support
2024.08.19 05:30
Investing.com — Gold holds near record levels Monday as expectations for a Federal Reserve rate cut and softer dollar underpin precious metal prices.
The recent surge in gold prices was primarily driven by expectations of a potential interest rate cut by the US Federal Reserve in September.
At 05:12 ET (0912 GMT), was down 0.2% to $2,5031.78 an ounce, while was up 0.1% to $2,540.65 an ounce, close to the all time high of $2509.65 hit on Friday
Gold prices peaked last week, spurred by expectations of the U.S. Federal Reserve interest rate cut in September.
The recent surge in gold, which has seen prices rise more than 20% so far this year, is also due to rising geopolitical tensions, strong central bank purchases, and renewed confidence in the economy.
Recent U.S. economic data, including stronger-than-expected retail sales, lower unemployment claims, and mild inflation figures, have boosted optimism about a potential Fed rate cut.
