FX.co ★ Gold Holds Firm Near Record High on Fed Rate-Cut Bets

Gold prices remained close to their record highs, trading at approximately $3,640 per ounce on Tuesday. This stability is largely driven by growing expectations that the Federal Reserve will implement rate cuts by the end of the year. Following a surprisingly weak US jobs report last Friday, the market is now forecasting three rate cuts for this year, with a 25 basis point reduction anticipated at the Federal Reserve's meeting next week. Investors are eagerly anticipating the upcoming US Producer Price Index (PPI) and Consumer Price Index (CPI) data, set to be released later this week, which may offer additional insights into the Federal Reserve's future actions. Besides expectations around interest rates, demand for this safe-haven asset continues to be fueled by uncertainties related to US tariffs and geopolitical tensions. Year-to-date, gold has seen a remarkable 39% increase, spurred by a weakening US dollar, robust central bank purchases, dovish monetary policies, and rising global uncertainties.