Gold prices rose to around $3,490 per ounce on Tuesday, hovering close to an all-time high, supported by rising expectations of a Federal Reserve rate cut this month and a weaker US dollar.
Last week’s US inflation report reinforced hopes for monetary easing, with markets now pricing in about a 90% probability of a 25bps cut at the upcoming Fed meeting.
San Francisco Fed President Mary Daly also reaffirmed her support for a rate reduction.
Investors now await the US nonfarm payrolls report, due later this week, which could influence the size of the Fed’s expected rate cut.
Additionally, uncertainty over President Donald Trump’s tariffs is underpinning safe-haven demand.
A US appeals court ruled on Friday that most Trump’s tariffs are illegal, though it allowed them to remain in place until October 14 to permit further appeals.
