WASHINGTON (dpa-AFX) - Gold extended gains from the previous session to set a new record high on Tuesday amid Fed rate cut hopes and ahead of this week's Treasury auctions.
As the U.S. job market cools, investors are pinning hopes that the Federal Reserve will lower rates twice more before the end of 2025.
Mounting economic uncertainty, inflationary pressures and escalating geopolitical tensions in Europe and the Middle East also fueled safe-haven demand for bullion.
Spot gold jumped nearly 1 percent to $3,783.21 per ounce in European trade, while U.S. gold futures were up 1.2 percent at $3,820.10.
The dollar index was range bound following cautionary remarks from Fed officials and ahead of the release of key manufacturing and services PMI data.
Traders also shifted focus to Fed Chair Jerome Powell's speech and upcoming PCE Price Index data, the Federal Reserve's preferred inflation gauge, which is expected to signal subdued price pressures.
Several Fed officials are set to speak at public events this week, including Chair Jerome Powell later in the day.
In his first policy speech since joining the Fed, Governor Stephen Miran said the thinks the Fed's benchmark interest rate is far too high and should be lowered aggressively.
Fed Bank of St. Louis President Alberto Musalem noted he sees limited room for more rate cuts. His Cleveland counterpart Beth Hammack also called for caution in easing policy.
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