gold prices

Gold Surges to New Highs⁣ Amid Growing Expectations of U.S. Interest Rate cuts

Gold prices reached a new peak as markets increasingly anticipate the Federal⁣ Reserve will lower ⁣interest rates in September, bolstering the precious metal’s appeal. The rally comes as revised U.S. government data indicates a more significant slowdown in job creation⁣ than previously estimated, further fueling speculation about monetary policy easing.⁢

This shift in expectations is‍ especially impactful for investors seeking safe-haven assets and those sensitive to interest rate fluctuations.⁤ Lower rates typically diminish the opportunity‍ cost of holding non-yielding gold, driving up demand. The potential for rate cuts also comes as economic indicators suggest a ​cooling U.S. economy,adding to the factors supporting gold’s upward trajectory.

Tuesday’s data revealed the American economy added 911,000 fewer jobs during ‍the 12 months ending in⁢ March than ⁢initially reported, signaling a⁤ deceleration ⁣in employment growth​ before the implementation of President Trump’s tariffs. This revision adds weight to arguments for a ⁣more ‍dovish Federal Reserve stance.

Recent non-agricultural employment data has ‌reinforced the case ⁢for a rate reduction at the upcoming September meeting. Market analysis, using the CME Group’s fedwatch tool, currently reflects a near-certain expectation of ⁢a 25-basis-point cut, with a slim 6% probability of a larger 50-basis-point‍ reduction.

Gold ⁢has already experienced substantial gains this year, increasing by 38% following a 27%⁤ rise in 2024.​ This performance ‍is attributed⁣ to a combination of factors including dollar ‍weakness, increased central bank purchases, accommodative monetary policies, and ⁢heightened global uncertainty.

In other precious metals trading, immediate silver rose 0.3% to $41 per⁢ ounce, platinum increased 0.9% to $1,380.74, and‌ palladium settled at $1,148.57 per ounce.