Gold Hits Record High as Investors Eye Fed Speeches and Inflation Data

Gold surged to a record high on Monday as investors awaited a series of speeches from U.S. Federal Reserve officials and key inflation data this week, following last week’s interest rate cut and signals that more easing could be on the way.

Spot gold rose about 1% to $3,718.56 per ounce by 10:22 a.m. Riyadh time, after reaching a record $3,707.40 last Wednesday. Meanwhile, U.S. gold futures for December delivery increased 0.9% to $3,739.20.

Tim Werther, Chief Market Analyst at KCM Trade, said, “Gold has returned close to the $3,700 level, and we could see new highs this week if U.S. macroeconomic data continues to suggest that the Fed may further cut interest rates.”

Markets are now focused on the release of the core Personal Consumption Expenditures (PCE) index on Friday, the Fed’s preferred gauge of inflation.

Werther added, “A combination of the Fed’s easing stance and continued demand from central banks is giving momentum to gold.”

At least 12 Fed officials are scheduled to speak this week, including Fed Chair Jerome Powell on Tuesday, with investors looking for more signals on monetary policy direction.

Last Wednesday, the Fed cut interest rates by 25 basis points while cautioning about persistent inflation pressures, raising uncertainty over the pace of future easing. New Fed member Stephen Miran defended his independence as a policymaker on Friday after dissenting for a larger rate cut at Wednesday’s meeting.

Investors widely expect two more 25-basis-point cuts this year in October and December, with probabilities of 93% and 81%, respectively, according to the FedWatch tool.

Gold, often a beneficiary of lower interest rates, has gained more than 40% since the start of the year, fueled by geopolitical and economic uncertainty, central bank purchases, and monetary easing.

Silver rose 0.3% to $43.20 per ounce, approaching a 14-year high. Platinum fell 0.4% to $1,398.40, while palladium edged up 0.1% to $1,150.75.