Gold Maintains its $2,500 Level Due to Fed Optimism -

Tuesday’s gold prices saw minimal movement, but they managed to stay above the psychological $2,500 per ounce mark due to investor optimism about impending US rate cuts.
As of 07:22 GMT, spot gold was almost unchanged at $2,513.74 an ounce. This year, prices have increased by more than 21%; on August 20, they reached a record high of $2,531.60. US gold futures dropped to $2,548.20, down 0.3%.

The US rate cut in September is a done deal, but the size of the cut is up for debate, so investors may opt to wait and see as they wait for more economic data to solidify their opinions, according to IG market strategist Yeap Jun Rong.

According to the CME FedWatch tool, traders see a 70% chance of a 25 basis point (bp) rate cut and a roughly 30% chance of a larger 50 bp reduction. Low interest rates tend to increase the appeal of non-yielding bullion.

According to Mary Daly, president of the San Francisco Federal Reserve, a quarter-percentage-point reduction in borrowing costs is anticipated for the following month.