Gold Rises Close to Record With Fed Seen Cutting Rates This Week
Gold rose near a record high as traders geared up for an anticipated easing of the US Federal Reserve’s monetary policy this week and looked for clues on further rate cuts this year.
Bullion traded near $3,660 an ounce, after gaining for four consecutive weeks. Investors see a quarter-point cut this week, following signs of labor market weakness. Swaps also price in at least another reduction before the end of the year, with a high probability of a third one.
That expectation has driven Treasury yields to the lowest level in months and weakened the dollar, making bullion more appealing as a store of value that doesn’t bear interest, while also cheaper for buyers in other currencies. Whether the Fed will challenge these bets is a key question for investors this week.
“Macroeconomic numbers are likely to take over from tariff-related headlines,” ANZ Group Holdings’ Daniel Hynes and Soni Kumari said in a note.
Gold has rallied nearly 40% this year and recently broke out from a spell of range-bound trading to surpass an inflation-adjusted record. Persistent uncertainty over geopolitics and President Donald Trump’s trade agenda, along with concerted central bank buying, have supported prices for the haven asset.
