Gold Prices Hit Record Level With Rate Cuts Seen Looming

Gold prices deed a grounds precocious Tuesday arsenic investors looked up to nan anticipation of interest-rates cuts starting this fall. 

The spot value of golden reached $2,465.65 an ounce, a grounds high, by Tuesday afternoon, according to LSEG information going backmost to 1968, per CNBC. Gold futures were precocious up 1.7% to astir $2,470 an ounce.

Attention to golden has ratcheted higher successful caller weeks aft cooler-than-expected ostentation successful June fueled expectations that nan Federal Reserve would little its benchmark liking complaint successful September. 

The imaginable of little liking rates is sometimes seen arsenic bullish for golden since nan precious metal, which doesn't salary a dividend, tin look much charismatic comparative to different assets, for illustration Treasurys, successful specified an environment. Investors whitethorn besides beryllium turning to gold arsenic a hedge against economical and geopolitical uncertainty.

Gold Among Top-Performing 2024 Assets

The CME FedWatch Tool, which estimates nan likelihood of liking complaint changes based connected 30-day fed costs futures, now shows that traders position a September trim as exceedingly likely, pinch further reductions expected to follow.

Gold has been 1 of nan best-performing world assets truthful acold successful 2024, pinch cardinal banks playing a awesome role.  Global charismatic golden reserves accrued by 290 metric tons successful nan first 4th of this year, nan largest first-quarter summation since astatine slightest 2000 and 69% higher than nan five-year quarterly average, according to nan World Gold Council.