Gold prices surged by approximately one percent on Tuesday, fuelled by investor optimism over potential signals from the US Federal Reserve regarding interest rate cuts, according to a report by Money Control.
Spot gold was trading 0.8 percent higher at $2,403.47 per ounce, while US gold futures closed 1 percent up at $2,451.90.
The US Federal Reserve is set to conclude its two-day policy meeting on Wednesday.
Global gold prices remain near record highs, say traders
Although a rate cut is not anticipated immediately, market expectations are that the Fed may hint at possible reductions as soon as September, wire services reported.
The US rate futures market has already priced in a September cut, which would diminish the opportunity cost of holding non-yielding gold.
Traders said global gold prices remain near record highs, bolstered by increased demand in India, following the country’s announcement of a major cut in customs duty – from 15 percent to 6 percent.
The World Gold Council (WGC) forecasted a rebound in consumption during the latter half of 2024, following the duty reduction.
Traders are also eyeing upcoming US employment data, including the critical non-farm payrolls report due on August 2, which could provide further insights into economic resilience.
In the broader metals market, spot silver rose by 1.6 percent to $28.31 per ounce, platinum gained 1.7 percent to $965.00, while palladium saw a decline of 1.4 percent, settling at $890.93.
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