Gold Prices Surge To All-Time High Amid Speculation Of US Interest Rate Cut. Check Rates

Spot gold increased by 0.2 per cent to $2,473.87 per ounce, after reaching a record high of $2,482.29. Concurrently, US gold futures climbed 0.3 per cent to $2,475.80

Gold prices soared to an unprecedented peak on Wednesday, fueled by growing optimism regarding a potential US interest rate cut in September following recent comments from Federal Reserve officials. A report by Reuters stated as of 0250 GMT, spot gold increased by 0.2 per cent to $2,473.87 per ounce, after reaching a record high of $2,482.29. Concurrently, US gold futures climbed 0.3 per cent to $2,475.80.

"Gold reached a new high watermark as investors position for the arrival of a lower interest rate environment. The $2,500 range is the next immediate target, though if the current momentum can be sustained, we could see prices rise even further before year-end," said Tim Waterer, KCM Trade's chief market analyst. "Especially if we observe more favourable US CPI prints, which could prompt the Fed to adopt a more dovish stance on rates than currently anticipated."

Market analysts are predicting at least a 25-basis-point rate cut by the Federal Reserve at its September meeting. The appeal of non-yielding bullion typically increases when interest rates are lowered.

Federal Reserve Chair Jerome Powell remarked on Monday that recent inflation readings "add somewhat to confidence" that the pace of price increases is stabilising to meet the Fed's target, hinting that rate cuts may be imminent.

Fed Governor Adriana Kugler echoed this sentiment on Tuesday, expressing cautious optimism that inflation is moving towards the central bank's 2 per cent target. "If gold prices retrace, $2,450 near its previous record high seems like a tempting level for bulls to reload for its next leg higher," commented Matt Simpson, senior analyst at City Index.

Meanwhile, top consumer China maintains a strong demand for official gold purchases despite a pause in May and June. According to a policy insider, industry experts, and data, China's bullion holdings remain low as a share of reserves amid ongoing geopolitical tensions.

In India, the gold price rally extended for the fifth consecutive session, rising by Rs 550 to Rs 75,700 per 10 grams in the local market on Tuesday, driven by continuous buying from jewellers and a persistent uptrend in international markets.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity quoted higher at Rs 75,700 per 10 grams and Rs 75,350 per 10 grams, respectively. The yellow metal has gained Rs 1,300 per 10 grams over the past five sessions since July 10, when it surged by Rs 400 to close at Rs 75,050 per 10 grams.