Gold prices remained stable on Tuesday, maintaining their position above the significant $2,500 per ounce mark. This stability reflects investor optimism about imminent U.S. rate cuts and ongoing concerns over the conflict in the Middle East.
As of 0722 GMT, spot gold was nearly unchanged at $2,513.74 per ounce. The precious metal has seen a rise of over 21% this year, reaching an all-time high of $2,531.60 on August 20. Meanwhile, U.S. gold futures dipped by 0.3% to $2,548.20.
The U.S. Federal Reserve is expected to cut interest rates in September, with a 70% chance of a 25-basis-point reduction and a 30% probability of a larger 50-basis-point cut, according to the CME FedWatch tool.
IG market strategist Yeap Jun Rong noted that the debate over the size of the rate cut may lead to cautious trading as investors await further economic data.
In addition to the rate cut, the ongoing geopolitical risks and central bank demand are likely to support gold prices in the long term, according to analysts.
Among other metals, spot silver edged up 0.2% to $29.96 per ounce, platinum decreased by 0.7% to $955.17, and palladium gained 0.7% to $965.07.
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