Gold inches closer to record as traders bet on Fed rate cuts

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Gold inches closer to record as traders bet on Fed rate cuts
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Spot gold rose to $2 442.57 an ounce by 10:48 a.m. in London.

Gold rallied toward a record as expectations for Federal Reserve rate cuts grow and traders ramp up bets on a second Donald Trump presidency.

“Optimism about US interest rate cuts as more economic data supports the case for a Fed pivot is supporting gold,” said Ewa Manthey, a commodities strategist at ING Bank NV. “Gold is poised to keep its positive momentum going amid the current global geopolitical and macroeconomic landscape, while central bank demand is expected to grow.”

Traders have been adding bets there will be three cuts this year after Goldman Sachs Group said conditions were ripe for easing, with “a solid rationale” for officials to lower rates as soon as July.

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