This week, global gold prices surged to a new record high, driven by rising expectations that the US Federal Reserve will continue to ease interest rates. Spot gold prices surpassed US$3,759.02 per ounce on Tuesday before slightly retreating to US$3,743.39 during Asian trading hours. The rally was fueled by last week’s 0.25% Fed rate cut, with markets now expecting additional reductions ahead.
A weaker US dollar, down 0.1%, has contributed to the upward momentum by making gold more affordable for international buyers. December gold futures also increased modestly by 0.1%, reaching US$3,779.50.
According to analysts at OANDA, the short-term outlook remains bullish, although profit-taking could lead to intraday declines. Support levels are identified at US$3,710 and US$3,690.
The Federal Reserve is expected to review its monetary policy trajectory within the next five weeks, with new Chair Jerome Powell and Governor Stephen Miran participating in upcoming meetings. Markets are attentively awaiting Powell’s speech later tonight for clearer guidance. While Miran has called for swift rate cuts to bolster employment, some officials caution against underestimating the risks posed by inflation.