Gold Scales Record Peak on Bets of Another Big Fed Rate Cut
Gold held steady after hitting an all-time high on Wednesday on hopes of another large U.S. rate cut as the spotlight shifted to Fed Chair Jerome Powell's comments and U.S. inflation data due later this week.
Spot gold was steady at $2,655.35 per ounce, after hitting an all-time high of $2,670.43 earlier.
U.S. gold futures gained 0.1% to $2,679.60.
The Federal Reserve delivered a 50-bp cut at its last policy meeting and traders see a 58% chance of another half-percentage-point cut next month.
Lower interest rates boost non-yielding gold's appeal.
"Gold hit a fresh all-time high as markets ramped up bets for another jumbo-sized Fed rate cut in November. Gold bulls should have little problems reaching the $2,700 mark by end-2024," said Han Tan, chief market analyst at Exinity Group.
Data on Tuesday showed that U.S. consumer confidence unexpectedly fell in September amid mounting fears over the health of the labour market.
Source : Reuters
