Gold holds near record high as investors look for more Fed cues By Reuters

By Daksh Grover

(Reuters) – Gold held near a record high on Tuesday as investors awaited minutes from the U.S. Federal Reserve and a speech by Chairman Jerome Powell for indications of how much the central bank will cut interest rates this year.

rose 0.2 percent to $2,500.08 an ounce by 0254 GMT, trading slightly below an all-time high of $2,509.65 hit on Friday. The US rose 0.1% to $2,537.70.

“Gold prices were largely flat in the Asian session, apparently taking a breather as buyers try to defend their new high,” said IG market strategist Yeap Jun Rong.

“Gold’s broader uptrend remains intact, which could see prices target a move towards the $2,665 level from a technical perspective.”

Gold prices have risen more than 20 percent so far this year on optimism that the Fed will begin cutting interest rates in September, strong central bank purchases and safe-haven demand stemming from tensions in the Middle East.

The appeal of non-yielding bullion tends to shine in a low-interest environment. The Fed is expected to cut rates by 25 basis points at each of its three remaining meetings in 2024, with a narrow majority of economists in a Reuters poll dismissing recession concerns.

The trader will closely monitor the minutes of the Fed’s July policy meeting on Wednesday and Chairman Jerome Powell’s speech at the Jackson Hole symposium on Friday for further clues.

The US dollar fell to a seven-month low in the previous session, supporting dollar gold.(USD/) (US/)

Holdings of SPDR Gold Trust (P:), the world’s largest gold exchange-traded fund, rose to a seven-month high of 859 tonnes on Monday. (GOL/ETF)

Among other metals, spot silver was down 0.8% at $29.25 an ounce. Platinum gained 0.6% to $958.95 and palladium fell 0.8% to $924.75.