Gold jumps to record above $2,460 an ounce on hopes Fed will soon cut rates
Gold jumped to a record Tuesday as rising expectations of a September interest rate cut bolstered demand for bullion.
Gold jumped to a record Tuesday as rising expectations of a September interest rate cut bolstered demand for bullion.
Gold futures advanced 1.7% to $2,471.1, topping the previous high of $2,454.20 reached May 20.
Spot gold jumped 1.8% to $2,465.95 during the session, which is an all-time high according to LSEG data going back to 1968 that has not been adjusted for inflation.
Gold prices hit all-time highs earlier this year before pulling back as the prospect of higher-for-longer interest rates dampened investor enthusiasm for the precious metal. But interest in the asset has grown after June’s softer inflation data and some recently dovish comments from Federal Reserve Chair Jerome Powell combined to raise the odds of rate cuts coming this year. Markets are pricing in 100% odds of a rate cut in September now, according to futures trading tracked by the CME FedWatch tool.
A weakening dollar has also supported demand for bullion. On Tuesday, the U.S. greenback rebounded after falling to a five-week low.
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