WASHINGTON (dpa-AFX) - Gold prices moved modestly higher to scale a fresh peak on Tuesday, buoyed by a weaker US dollar and complemented with day-by-day increasing expectations of a Fed rate cut.
Front Month Comex Gold for September delivery edged up by $5.20 (or 0.14%) to $3,643.30 per troy ounce today. Notably, today's value is a new record closing high for gold .
Meanwhile, front Month Comex Silver for September delivery slumped by 54.80 cents (or 1.32%) to $40.878 per troy ounce.
On the economic front, preliminary benchmark revision data released by the US Labor Department today revealed that the US economy added 911,000 (or -0.6%) fewer jobs in the 12 months through March than initially reported. This is the largest downward revision since at least 2000.
Ahead of closely watched inflation data due to be released in the coming days, CME Group's FedWatch Tool is currently indicating a 92.0 percent chance the Fed will lower rates by a quarter point and a slim 8.0 percent chance of a half-point rate cut.
Against a basket of major currencies, the US dollar index dropped to around 97.25, the lowest since late July.
Dodging both 'sanctions threats' by the US as well as calls for negotiations across the table, Russia is continuing its attacks on Ukraine.
In its latest aerial attack, a Russian glide bomb struck a village in Donetsk in eastern Ukraine, killing at least 21 civilians standing in line for their pensions.
The potential for Russia facing heavy sanctions by the US and the west is increasing day after day, which is boosting demand for safe-haven assets.
On the tariff front, the Trump administration is facing a critical test before the US Supreme Court where the government is battling the validity of 'reciprocal tariffs' imposed by Trump, which were deemed 'illegal' by a lower appeals court on August 29.
If the Supreme Court upholds the appeals court judgment, the world's largest economic power is set to lose billions of dollars by refunding the tariffs to American companies. In addition to financial loss, it could diminish the US President's negotiating position on the global stage.
This new uncertainty in the trade landscape has pushed investors towards the yellow metal.
This week, reports on the US producer and consumer price and inflation numbers are due on Wednesday and Thursday, respectively, which could shed more light on the current economic scenario.
Ongoing macroeconomic uncertainty and a gold acquisition spree by central bankers globally have caused the price of the precious metal to skyrocket in a short span.
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