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Gold hits new high as more interest rate cuts expected
Gold prices traded at an all-time high during trading on Monday, September 22, amid anticipation of economic data and statements from US Federal Reserve officials.
Gold futures reached a record high of $3,763.10 per ounce on Monday, a new record high after the Federal Reserve cut interest rates last week and expects two more cuts this year.
In trading, the spot price of the yellow metal rose 0.8% to $3,711.45 per ounce.
Gold has risen more than 42% this year, driven by increased demand from central banks and investors seeking a safe haven amid uncertainty over President Donald Trump's tariffs and threats to the Federal Reserve's independence.
Markets are currently focused on the release of the US Personal Consumption Expenditures (PCE) index on Friday, the Federal Reserve's preferred measure of inflation.
At least 12 Federal Reserve officials are scheduled to speak this week, including Chairman Jerome Powell on Tuesday, as investors await further signals on monetary policy direction.
The Federal Reserve cut interest rates by 25 basis points last Wednesday, warning of persistent inflation pressures, raising doubts about the next pace of easing.
For his part, Tim Waterer, senior market analyst at KCM Trade, told Reuters that gold prices have returned to the $3,700 level, and we could see new highs this week if US macroeconomic data continues to provide signals that the Fed may continue to cut rates further.
Waterer added that a combination of the Fed's dovish stance and continued demand from central banks is providing momentum in gold's favor.
Investors widely expect two additional rate cuts this year, each of 25 basis points, in October and December, with odds of 93% and 81%, respectively, according to the FedWatch tool.
Gold, which often benefits from lower interest rates, has risen more than 40% since the beginning of the year, driven by geopolitical and economic uncertainty, central bank buying, and monetary easing.
