23.09.202501:40:59UTC+00Gold Extends Record Run on Rate-Cut Hopes

Gold surged to a fresh record high on Tuesday, climbing to approximately $3,750 per ounce. This rise is bolstered by market expectations of further interest rate cuts by the Federal Reserve within the year. Following the Fed's initial rate cut last week, coupled with indications of potential future reductions due to a weakening labor market, markets have largely anticipated close to two additional 25-basis-point cuts in the central bank's upcoming meetings for the year. In contrast, several Federal Reserve officials emphasized the importance of a measured approach in future rate considerations, with St. Louis Fed President Alberto Musalem highlighting the constraints on easing further due to ongoing inflationary pressures. Market participants are keenly awaiting Federal Reserve Chair Jerome Powell’s upcoming comments on the economic outlook and the release of the PCE price index—recognized as the Fed's preferred measure of inflation—on Friday for further insights into prospective policy actions.