FX.co ★ Gold Futures Near Record High Ahead of Fed Rate Decision

Gold futures moved closer to $3,660 per ounce on Monday, nearing the record high of $3,674 from September 9th. This increase was driven by a weaker US dollar and declining Treasury yields, which heightened demand for the precious metal. Investors are keenly anticipating a significant Federal Reserve meeting this week, where it is largely anticipated that policymakers will announce the first interest rate reduction since December, likely at least by 25 basis points, on Wednesday. This decision emerges against the backdrop of a cooling labor market juxtaposed with tariff-induced inflationary pressures, as concerns linger regarding the Fed's autonomy. The release of updated FOMC projections is also anticipated, potentially indicating one or two further rate cuts by the end of the year. Market participants will be closely monitoring US retail sales and industrial production figures, set to be released on Tuesday, for further insights into the economy’s resilience. Additionally, the US–China trade discussions in Madrid, which started on Sunday, remain a focal point as international trade tensions continue to influence market dynamics.