WASHINGTON (dpa-AFX) - Gold prices edged up to a fresh record high on Tuesday, triggered by a weakening greenback amid heightened expectations for a rate cut at the two-day US Federal Open Market Committee meeting that began today. The Fed will be announcing their interest rate decision at 2:00 p.m. EST on Wednesday.
Front Month Comex Gold for September delivery rose by $6.70 (or 0.18%) to $3,688.90 per troy ounce today. Gold prices have risen for three consecutive sessions.
Front Month Comex Silver for September delivery dipped by 4.60 cents (or 0.11%) to $42.471 per troy ounce today.
With a tricky 'dual mandate' on hand to keep inflation low as well as to ensure full employment, the US FOMC meeting commenced today.
On the one hand, the US labor market has shown signs of weakness, as revealed by a slowdown in hiring, supporting the need for a rate cut by the Fed. On the other hand, as a consequence of US President Donald Trump's tariffs, inflation in the US is crawling up, compelling the Fed to leave rates untouched.
The data-driven, 12-member rate-setting group of the FOMC and Fed Chair Jerome Powell are under pressure by Trump to slash rates.
On the economic front, data released by the US Commerce Department today revealed that retail sales increased 0.6% month-over-month in August 2025.
Data released by the US Labor Department today revealed that export prices in August, rose 0.3% month-over-month while on a yearly basis, rose 3.4%.
Prices of goods imported by the US month-on-month rose by 0.3% for August, while they were unchanged year-on-year.
US retail sales excluding food services, auto dealers, building materials, and gasoline stations - known as the retail sales control group and a key input for GDP - rose 0.7% month-over-month in August.
Data released by the US Fed today revealed that industrial production in the US for August ticked up 0.1%.
For August, month-on-month manufacturing output increased 0.2% while year-over-year, it increased 0.90%.
According to CME Group's FedWatch Tool, investors are betting on 96.1% chances of a 25-basis-point interest rate cut and 3.9% chances of a bigger 50-basis-point rate cut in today's FOMC meeting.
The Trump administration is engaged in a legal battle in the US Supreme Court to reclaim the validity of its 'reciprocal tariffs' after a lower court deemed them 'illegal' on August 29. More than the levies per se, this uncertainty on the 'validity' has created huge unrest in the trade scenario.
On the geopolitical front, the three-year-plus war between Russia and Ukraine entered day #1300 with both sides intensifying attacks.
Last week's aerial attack on Doha by Israeli Defense Forces targeting Hamas leaders prompted Arab and Muslim nations to express their solidarity with Qatar. However, Israel's PM Benjamin Netanyahu did not rule out more such strikes on Hamas leaders 'wherever they are'.
Conflict in Europe and tension in the Middle East are other contributing factors supporting gold prices.
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