Home Investment Gold Holds Near Record Highs as Fed Cut Bets and Geopolitical Risks Support Demand

Gold Holds Near Record Highs as Fed Cut Bets and Geopolitical Risks Support Demand

by Deidre Salcido
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Investorideas.com (www.investorideas.com
Newswire) a go-to platform for big investing ideas, including gold and
silver stocks issues market commentary from Frank Walbaum Market
Analyst at Naga.


Gold prices held close to record territory on Tuesday, underpinned by
mounting expectations of a Federal Reserve rate cut and continued
geopolitical strains. Markets are now pricing nearly a 90% chance of a
25-basis-point rate reduction at the upcoming Fed meeting as San
Francisco Fed President Mary Daly reiterated her backing for easing.


Investors are awaiting Friday’s nonfarm payrolls release, which could
prove decisive in shaping the central bank’s moves. Weak data could
benefit non-yielding assets, such as precious metals.


Confidence in US assets has also been dented by concerns over the
Fed’s independence. After recent criticism from President Trump of
Jerome Powell and other Fed officials, Treasury Secretary Scott
Bessent stressed the central bank’s autonomy while defending Trump’s
right to dismiss Governor Lisa Cook.


Geopolitical tensions remained a strong tailwind for bullion. North
Korea’s Kim Jong Un travelled to China to meet Xi Jinping and Vladimir
Putin, raising the prospect of deeper trilateral military cooperation.
In the Middle East, the humanitarian crisis deepened.



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