Spot bullion rose 0.2% to just below $2,430 an ounce after nearing May’s peak. Traders anticipate two quarter-point rate cuts in 2024 as US inflation cools, with a 60% chance of a third cut after Goldman Sachs cited a solid rationale for lower rates by July.
Gold rallied this month as markets prepared for the Fed’s shift to easier policy, enhancing the appeal of non-interest-bearing assets. Fed Chair Jerome Powell confirmed confidence in declining inflation. Prices have also benefited from central-bank buying.
Standard Chartered analyst Zhong Liang Han noted that gold is consolidating near its record high, with a significant Fed rate cut shift needed to break above it. He added, “Policy rate expectations are in the driving seat, but political uncertainty could take over.”
The weekend’s assassination attempt on Donald Trump has investors weighing its financial and political impact. Bullion for immediate delivery was 0.2% higher at $2,427.93 at 10:37 a.m. in Singapore.