WASHINGTON (dpa-AFX) - Gold scaled a record high on Tuesday while the dollar was on the back foot, sliding to multi-month lows ahead of the Federal Reserve's interest-rate decision.
Spot gold rose half a percent to $3,697.02 an ounce in European trade, while U.S. gold futures were up 0.4 percent at $3,734.80.
Bullion was moving higher in anticipation of a Federal Reserve rate cut when the U.S. central bank announces its monetary policy decision on Wednesday.
The U.S. central bank is widely expected to deliver a quarter point interest-rate cut following recent data showing relatively subdued inflation and a weakening labor market.
According to CME Group's FedWatch Tool, there is a slim 3.6 percent chance of a half-point rate cut.
As concerns about a softening labor market take precedence over sticky inflation, traders will pay close attention to the Fed's accompanying statement, guidance from the dot plot and Fed Chair Jerome Powell's post-meeting comments for clues about the likelihood of further rate cuts.
Ahead of the rate-setting meeting, the U.S. Senate has confirmed President Donald Trump's nominee Stephen Miran as a Federal Reserve Governor Monday night.
In another significant development, a U.S. appeals court has ruled Lisa Cook can remain on the Federal Reserve board while her lawsuit proceeds.
In economic releases, trading later in the day may be impacted by reaction to reports on U.S. sales, industrial production and import and export prices.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
