FX.co ★ Gold Extends Gains on Fed Rate Cut Bets

Gold prices increased, reaching approximately $3,380 per ounce on Tuesday, marking the fourth consecutive session of gains. This upward trend is largely attributed to escalating expectations of a US interest rate reduction in September. Currently, traders estimate a 94.4% likelihood that the Federal Reserve will lower rates next month, following a disappointing jobs report that heightened concerns regarding the US economic outlook. San Francisco Federal Reserve President Mary Daly indicated on Monday that the time is nearing for rate cuts, citing substantial evidence of a cooling labor market and an absence of enduring tariff-induced inflation. Additionally, gold found support due to renewed apprehensions about the Federal Reserve's independence, following Governor Adriana Kugler's resignation last Friday. This event provides President Donald Trump with the opportunity to appoint a successor more sympathetic to his advocacy for reduced interest rates. Furthermore, the safe-haven appeal of gold has been bolstered by ongoing trade uncertainties, as Trump's latest wave of tariffs on exports from numerous trading partners is scheduled to be implemented on August 7.