NEW YORK: Gold continued its record rally on Tuesday, buoyed by expectations of an imminent September US interest rate cut, while investors looked ahead to inflation data due this week.
Spot gold was up 0.3 percent at USD3,646.59 per ounce, as of 1206 p.m. ET (16:06 GMT), after hitting a record high of USD3,673.95 earlier in the session.
US gold futures for December delivery rose 0.2 percent to USD3,685.60.
“This rally is largely driven by expectations that the Federal Reserve will begin cutting rates, potentially as early as September,” said Bart Melek, head of commodity strategies at TD Securities.
Traders are currently pricing in a 92 percent chance of a 25-basis-point rate cut next week, with some also betting on a larger 50-basis-point move, as per the CME FedWatch tool.
This comes after Friday’s data showed US job growth weakened sharply in August. Lower interest rates pressure the dollar and bond yields, raising the appeal of non-yielding bullion.
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