Gold hits record above $4,100/oz on rate cut forecast

GOLD prices surged to a record high above $4,100 on Tuesday, driven by expectations of further US Federal Reserve interest rate cuts and renewed trade tensions between Washington and Beijing, said Reuters.Spot gold climbed 1.7% to reach $4,179.48 per ounce, whilst US futures for December delivery advanced 1.3% to $4,187.50/oz. The precious metal has rallied 57% so far this year, having breached the $4,100 level for the first time on Monday, the newswire said.Silver also touched an all-time peak, jumping 2.2% to $53.60, supported by similar market forces and tightness in the spot market.Kelvin Wong, senior market analyst at OANDA, said trade tensions were not the main catalyst for Tuesday’s rally, noting that growing expectations of continued Fed rate cuts reducing long-term funding costs were also bolstering gold.Anna Paulson, head of the Philadelphia Federal Reserve, told Reuters mounting labour market risks had strengthened the argument for additional US rate reductions. Markets are pricing in a 99% probability of a 25 basis point cut in October and 94% in December.Investors await Fed chairman Jerome Powell’s speech at Tuesday’s NABE annual meeting for further monetary policy guidance.Bank of America and Société Générale now project gold will reach $5,000 by 2026, whilst Standard Chartered has raised its 2026 forecast to $4,488.US Treasury Secretary Scott Bessent added that the ongoing federal government shutdown, now entering its thirteenth day, was beginning to impact the economy.The post Gold hits record above $4,100/oz on rate cut forecast appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com