Gold Rate Today: Yellow Metal Hits Record High As Dollar Weakens Amid Interest Rate Cut Expectations

Gold Rate Today: Spot gold climbed 0.2 per cent to $2,565 per ounce by 0258 GMT, after reaching a record-breaking $2,567.93 earlier in the session

Gold Rate Today: Gold prices surged to an all-time high on Friday, driven by a weakening U.S. dollar and anticipation of a Federal Reserve interest rate cut next week, as reported by Reuters. Spot gold climbed 0.2 per cent to $2,565 per ounce by 0258 GMT, after reaching a record-breaking $2,567.93 earlier in the session. The precious metal has posted a 2.7 per cent gain this week.

US gold futures also rose, gaining 0.5 per cent to settle at $2,593.40. The dollar's decline to a one-week low made gold more affordable for buyers holding other currencies, boosting its demand.

"Gold has been building momentum following its recent rise. Gains have been steady, and we could see a period of consolidation before another attempt at $2,600 if the dollar remains under pressure," commented Tim Waterer, chief market analyst at KCM Trade. He noted that the potential for a prolonged interest rate cut cycle by the Fed would further strengthen gold's appeal as a non-yielding asset.

The International Monetary Fund (IMF) supported this outlook on Thursday, suggesting it was appropriate for the Federal Reserve to start easing monetary policy at its upcoming meeting, as inflation risks have diminished. Market participants are pricing in a 43 per cent probability of a 50-basis-point rate cut and a 57 per cent chance of a 25-basis-point reduction at the Fed's September 18 meeting.

Investors are also looking ahead to US consumer sentiment data, due later today, for further insights into the Fed's rate policy trajectory.

Other precious metals saw gains as well. Spot silver edged up 0.1 per cent to $29.93 per ounce, while platinum rose 1 per cent to $986.60. Both metals are on track for weekly gains. Palladium, up 0.16 per cent to $1,048.06, is set for its best week since December 2023, spurred by concerns over potential export curbs.

Russian President Vladimir Putin added to market volatility by suggesting on Wednesday that Moscow may consider limiting exports of key metals like uranium, titanium, and nickel in response to Western sanctions.