Global gold prices hold steady near record high as investors expect a US Federal Reserve rate cut. The precious metal traded close to the key $3,600 mark, maintaining strength after reaching $3,599.89 last week.
Spot gold stood at $3,583.41 per ounce in the latest session. Analysts said weaker US jobs data continues to push expectations of easier monetary policy. Many traders now see a possible 25-basis-point cut this month, with a small chance of a larger 50-basis-point cut.
Kyle Rodda, a market analyst at Capital.com, explained the situation. He noted that all current conditions support higher gold prices. Unless an unexpected inflation surge arrives, gold may test the $3,600 level very soon.
US employment growth slowed sharply in recent weeks. The jobless rate climbed to its highest level in almost four years. These figures increased market confidence that the Federal Reserve will reduce rates. Traders now view a cut as almost certain.
Lower interest rates often benefit gold. They reduce the cost of holding the non-yielding metal while also weakening the US dollar. A weaker dollar makes gold cheaper for investors who hold other currencies.
Focus now turns to the upcoming US inflation report. The data will help markets judge the scale of the expected Fed cut. Investors believe a softer inflation number will give the central bank more room to ease policy.
Gold has already gained strongly this year. Prices rose 37 percent so far, following a 27 percent rise the year before. Factors driving this rally include a weaker dollar, increased central bank purchases, and global uncertainty. China’s central bank extended its gold buying streak for the tenth month in a row during August.
Speculators also expanded their positions in gold futures. Net long contracts increased by over 20,000, reaching more than 168,000. This shows stronger confidence in further gains.
Other precious metals moved in different directions. Spot silver fell by one percent to $40.57 per ounce. Platinum rose slightly to $1,375.33, while palladium stayed flat at $1,109.50.
Overall, global gold prices hold steady near record high as markets prepare for the Fed decision. Many investors expect further momentum if policy easing continues and global risks remain strong.