Expectations of a sharp rate cut by the Federal Reserve push gold prices to a new record high

Odaily Odaily News Gold prices hit a record high of $2,588.95 an ounce on Monday, helped by a weaker dollar and market expectations that the Federal Reserve will cut interest rates this week for the first time since 2020, with the range possibly reaching 50 basis points. Tim Waterer, chief market analyst at KCM Trade, said, "The prospect of a 50 basis point rate cut by the Federal Reserve this week has caused gold and the dollar to move in opposite directions. The overall situation for gold remains favorable and may rise further. If the dollar continues to fall, gold prices may reach $2,700 an ounce by the end of the year." This week, all eyes will be on the Federal Reserve, and there is increasing speculation about the extent of the Fed's interest rate cut at its monetary policy meeting on September 17-18 and the pace of future rate cuts. According to the CME Fed Watch tool, the market currently expects a 59% chance of a 50 basis point rate cut on Wednesday, up from 43% last Friday. (Jinshi)