"Gold surged to another record high on Tuesday, lifted by a softer dollar and firm expectations of the Federal Reserve easing. Traders are now fully pricing in a 25-basis-point cut at next week's policy meeting, with a slim chance of a larger 50-basis-point move, reinforcing demand for the non-yielding asset. Markets are also awaiting the Fed's quarterly projections and Chair Jerome Powell's press conference for signals on the pace of future cuts."
"Should the central bank's guidance fall short of dovish market expectations, gold could face near-term selling pressure. However, any confirmation of multiple cuts would strengthen its rally, potentially leading to new highs. ETF demand added to the momentum. Gold holdings continued to rise as gold ETFs added another 15 tons last week. However, inflows slowed down relative to the two previous weeks."
"The backdrop of political interference in the Fed also continued to lend support, as a US appeals court blocked President Trump's attempt to dismiss Governor Lisa Cook. Geopolitical tensions provided further tailwinds. In the Middle East and in Eastern Europe, tensions continue to mount. Both conflicts reinforced defensive positioning in gold."
Gold rose to another record high driven by a softer dollar and strong expectations that the Federal Reserve will ease monetary policy. Traders fully priced a 25-basis-point cut at next week's meeting and assigned a slim chance to a 50-basis-point move, supporting demand for the non-yielding asset. Markets awaited the Fed's quarterly projections and Chair Jerome Powell's press conference for guidance on the pace of future cuts. ETF holdings increased as funds added about 15 tonnes last week, though inflows slowed compared with prior weeks. Political interference concerns and rising geopolitical tensions in the Middle East and Eastern Europe further strengthened defensive positioning in gold.
Read at London Business News | Londonlovesbusiness.com
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