Gold Holds Near Record High as Markets Await Fed Policy Signals

Gold prices hovered close to record highs on Monday, supported by last week’s U.S. interest rate cut and growing expectations of further monetary easing from the Federal Reserve later this year.

Key Highlights:

• Spot gold rose about 0.7% to $3,709.29 per ounce, after briefly touching a record $3,711.55 earlier in the session.

• U.S. gold futures for December delivery climbed 1% to $3,743.40 per ounce.

• Markets are pricing in the possibility of two more Fed rate cuts in 2025—one in October and another in December—each by 25 basis points.

Drivers of Support:

1. Expectations of more Fed cuts – Investors are closely watching upcoming speeches from Fed officials and the core PCE inflation data, a key gauge for monetary policy.

2. Central bank buying – Continued gold purchases by global central banks are adding strong support to the bullish trend.

3. Economic and political uncertainty – Ongoing global uncertainty is boosting gold’s appeal as a safe-haven asset.

Outlook:

• Traders will focus on U.S. economic data and Fed guidance in the coming weeks for clearer direction.

• Should inflation data align with a more dovish Fed stance, gold could potentially set fresh record highs.