Gold Holds Near Record, Fed Backs Rate Cut Bets Investing.com

Investing.com — Gold held near record highs on Monday as expectations of a Federal Reserve rate cut and a weaker dollar supported precious metal prices.

The recent rally in gold prices was driven primarily by expectations of a potential interest rate cut by the US Federal Reserve in September.

By 05:12 ET (0912 GMT), it was down 0.2 percent at $2,5031.78 an ounce, while it was up 0.1 percent at $2,540.65 an ounce, near its 2509 all-time high. $65 reached on Friday

Gold prices peaked last week, boosted by expectations of a US Federal Reserve interest rate cut in September.

Gold’s recent rally, which has seen prices rise more than 20% 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 jobless claims and soft inflation numbers, fueled optimism about a potential Fed rate cut.