Gold Near Record as Traders Bet on More U.S. Rate Cuts
Gold is extending its winning streak, logging a fifth consecutive weekly gain as investors weigh the Federal Reserve’s policy outlook against fresh inflation data expected later this week.
After the Fed delivered its first rate cut of the year on Wednesday — trimming its benchmark by a quarter point — bullion briefly surged to within $20 of last week’s record high. The rally cooled after Chair Jerome Powell signaled that future moves would depend on economic data rather than a preset path of aggressive easing.
Markets are now turning their attention to the U.S. personal consumption expenditures index due Friday, the Fed’s preferred inflation gauge.
A softer reading would strengthen the case for more rate cuts, a scenario that typically boosts non-yielding assets like gold. Powell is also scheduled to speak on Tuesday, offering further insight into how policymakers view the balance between inflation and growth.
Even with Powell’s cautious tone, traders still expect almost two additional cuts this year. That outlook, combined with geopolitical uncertainty, Trump’s tariff policies, and robust central-bank buying, has underpinned gold’s nearly 40% surge since January.
Exchange-traded funds have also reported steady inflows as investors continue to seek a safe haven.
With bullion holding near historic levels and macroeconomic pressures mounting, all eyes are now on whether this week’s data will clear the path for gold to push into uncharted territory.
Source: Bloomberg
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