FX.co ★ Gold Eyes New Record High

Gold prices surged past $4,610 per ounce on Wednesday, aiming to set a new record, bolstered by increasing predictions of US interest rate cuts and heightened demand for safe-haven assets. Data from December indicated a moderation in core US inflation, reinforcing the belief that price pressures are progressively easing. This clearer scenario emerged after earlier figures were skewed by temporary shutdown effects. As a result, futures on interest rates revealed a divided investor sentiment between anticipating two or three Federal Reserve rate cuts this year, surpassing the policymakers' median forecast of only one cut. Concurrently, demand for safe-haven investments intensified due to renewed worries about the Federal Reserve's autonomy, following a US criminal investigation related to Chair Powell's testimony in June. Additionally, geopolitical risks continue to be high, with markets closely observing the potential for US involvement in Iran's political unrest amid ongoing warnings of possible military intervention.