"Gold prices held close to record territory on Tuesday, underpinned by mounting expectations of a Federal Reserve rate cut and continued geopolitical strains."
"Markets are now pricing nearly a 90% chance of a 25-basis-point rate reduction at the upcoming Fed meeting as San Francisco Fed President Mary Daly reiterated her backing for easing."
"Investors are awaiting Friday's nonfarm payrolls release, which could prove decisive in shaping the central bank's moves. Weak data could benefit non-yielding assets, such as precious metals."
"Confidence in US assets has also been dented by concerns over the Fed's independence. After recent criticism from President Trump of Jerome Powell and other Fed officials, Treasury Secretary Scott Bessent stressed the central bank's autonomy while defending Trump's right to dismiss Governor Lisa Cook."
Gold prices remained close to record levels as markets increasingly expect a Federal Reserve rate cut and as geopolitical strains persisted. Traders priced nearly a 90% chance of a 25-basis-point reduction after San Francisco Fed President Mary Daly reiterated support for easing. Investors awaited Friday's nonfarm payrolls report, which could influence Fed decisions; weak payrolls would favor non-yielding assets like precious metals. Confidence in US assets weakened amid concerns over the Fed's independence after President Trump criticized Fed officials, prompting Treasury Secretary Scott Bessent to defend central bank autonomy while acknowledging presidential dismissal rights. Geopolitical risks from North Korea-China-Russia engagement and worsening Middle East humanitarian conditions supported bullion demand.
Read at London Business News | Londonlovesbusiness.com
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