Gold Hit All-Time High as Fed Rate Cut Expectations

Gold costs increased by over 1% to reach a new peak on Thursday, supported by the anticipation of a rate reduction by the Federal Reserve in the coming week following indications from U.S. economic data that the economy is decelerating.

Spot gold was up 1.8% at $2,556.86 per ounce. U.S. gold futures were up 1.7% at $2,585.20. Prices for goods made in the U.S. rose just a bit above what was anticipated in August, but this pattern stayed steady as inflation began to cool down.

At the moment, the financial markets are anticipating an 87% probability of a 25-basis-point reduction in the U.S. interest rate by the Federal Reserve during its meeting from Sept. 17 to 18, according to the CME FedWatch tool. Additionally, there's a 13% likelihood of a 50-basis-point reduction.

Investors noted that the metal was gaining from a rally that was short-lived, following a statement from Russian President Vladimir Putin on Wednesday indicating that Russia might think about restricting the export of uranium, titanium, and nickel as a response to Western actions.

⎪Gold prices edged higher on Thursday, with traders focusing on the upcoming U.S. economic data that may offer further insights into an expected reduction in the Federal Reserve’s interest rate next week.⎪