Gold Prices Hold Gains, Driven by Hopes of a Fed Rate Cut
Gold prices remain near their highest levels amid growing market confidence that the US Federal Reserve will cut interest rates at its upcoming September meeting. Gold is currently trading steady around $3,375 per ounce on Tuesday morning in Asia.
Weaker-than-expected US employment data fueled concerns about an economic slowdown, fueling expectations of an interest rate cut. Traders currently estimate a nearly 98% chance that the Fed will cut rates next month. Lower interest rates typically increase gold's appeal because it offers no interest yield.
Furthermore, political tensions surrounding the Fed's independence have also supported buying sentiment in gold. The resignation of Fed Chair Adriana Kugler gives President Donald Trump the opportunity to appoint a replacement aligned with his interest rate cut agenda, adding to uncertainty about future monetary policy.
Gold has risen nearly 30% so far this year, driven by geopolitical conflicts, trade wars, central bank buying, and speculation of interest rate cuts. Fidelity International even predicts that gold prices could reach $4,000 per ounce by the end of next year. Meanwhile, prices for silver, platinum, and palladium are expected to remain stable. (ayu)
Source: Newsmaker.id
