BENGALURU- Gold prices edged higher on Monday, aided by a softer dollar and expectations of a US interest rate cut, while spotlight shifted to economic data for more clues on the Federal Reserve’s monetary policy path.
Spot gold was up 0.2 percent at $2,405.27 per ounce. Prices scaled an all-time high of $2,483.60 last week. US gold futures gained 0.3 percent to $2,406.10.
The dollar eased in the initial reaction to US President Joe Biden’s decision to end his reelection campaign, clearing the way for another Democrat to challenge Donald Trump.
A weaker dollar makes bullion more attractive to buyers holding other currencies.
The prospect of rate cuts and the political uncertainty in the United States are supporting gold prices, conditions are in place for gold to see another record high before end of 2024, said Kyle Rodda, a financial market analyst at Capital.com.
Markets are pricing in a 97 percent chance of a rate cut by the Fed in September, according to the CME FedWatch Tool. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
