Gold jumped to a record Tuesday as rising expectations of a September interest rate cut bolstered demand for bullion.
Gold futures settled up 1.6% to an all-time closing high of $2,467.8 per ounce, after also hitting a new intraday record high of $2,474.5 during the session. Gold futures prices have climbed more than 19% this year.
Spot gold jumped 1.9% to $2,468.68 an ounce during the session. LSEG data shows that’s an all-time high going back to 1968, without adjusting for inflation.
Gold prices hit record highs earlier this year before pulling back as the prospect of higher-for-longer interest rates dampened investor enthusiasm for the precious metal. But interest in the asset has grown after June’s softer inflation data and some recently dovish comments from Federal Reserve Chair Jerome Powell combined to raise the odds of rate cuts coming this year. Markets are pricing in 100% odds of a rate cut in September now, according to futures trading tracked by the CME FedWatch tool.
