Global gold price hits record high on US Federal Reserve rate cut bets
Global gold prices surged to a fresh record this week, fuelled by mounting expectations that the US Federal Reserve will continue easing interest rates.
Spot gold broke above US$3,759.02 per ounce on Tuesday before easing slightly to US$3,743.39 in Asian morning trade. The rally followed last week’s Fed rate cut of 0.25%, with markets now pricing in further reductions.
A softer US dollar, down 0.1%, has added momentum by making gold cheaper for foreign buyers. December gold futures also edged up 0.1% to US$3,779.50.
Analysts at OANDA said the short-term outlook remains bullish, though profit-taking could trigger intraday pullbacks. Key support levels are seen at US$3,710 and US$3,690.
The Fed is set to revisit its policy path within five weeks, with newly appointed governor Stephen Miran joining Chair Jerome Powell in upcoming meetings.
Powell’s speech later tonight is closely watched for clearer guidance. Miran has urged swift cuts to support jobs, though other officials warn against underestimating inflationary risks.
According to the CME FedWatch Tool, investors see a 90% chance of another 0.25% cut in October and a 75% probability of a further cut in December.
ANZ Bank noted that slowing global growth, persistent inflation, a weaker dollar and geopolitical tensions are underpinning demand for gold.
The bank added that strong appetite for the metal could spill over to silver, even though prices eased 0.9% to US$43.67 per ounce, near a 14-year high. Platinum fell 0.3% to US$1,412.80, while palladium slipped 0.2% to US$1,176.44.
