BENGALURU- Gold prices were trading below record high levels on Wednesday after a rally fueled by Western fund inflows and US rate-cut optimism, as investors braced for minutes of the Federal Reserve’s latest meeting for clarity on the depth of cuts.
Spot gold was up 0.1 percent at $2,517.38 per ounce, after hitting an all-time high of $2,531.60 on Tuesday. US gold futures rose 0.2 percent to $2,555.20.
Gold has gained about $460 or 22 percent so far this year, with geopolitical tensions and uncertainty created by the upcoming US Presidential elections and prospective rate cuts set to help power the precious metal to even loftier levels.
“Gold’s glittering rally is a reflection of markets anticipating deeper Fed cuts,” said OCBC FX strategist Christopher Wong.
Traders have fully priced a rate cut at the Fed’s September meeting, with a 68 percent chance of a 25 basis points cut, according to CME FedWatch tool.
The dollar slipped to its lowest this year versus the euro, while benchmark 10-year Treasury yields also sank, making non-yielding bullion more attractive for holders of other currencies.
