Gold Hovers at Record Levels
Gold traded near $2,630 per ounce on Tuesday, hovering at record levels, as prospects of less restrictive monetary policy and elevated geopolitical risks magnified support for safe-haven assets.
The significant rate cut by the Federal Reserve continued to enhance the appeal of the precious metal, along with indications that the Fed may implement another 50 bps reduction by year-end.
Atlanta Fed President Bostic noted that inflation progress and labor market cooling have occurred faster than expected, suggesting a normalization of monetary policy sooner than previously thought.
Traders are now awaiting the PCE report due this week and additional speeches from several Fed officials to gauge the central bank's next move.
Meanwhile, gold's status as a safe haven was further bolstered by rising tensions in the Middle East, following Israeli strikes on Lebanon on Monday, the deadliest attack since the 2006 Israel-Hezbollah war. (ayu)
Source: Trading View
