Gold nears record

Gold is trading near record highs with expectations that the US Federal Reserve will cut interest rates three times this year. Gold started the day on the rise. The ounce price of gold, which climbed to $2,439 yesterday, is trading at $2,432 this morning, up 0.4 percent. Investors expect interest rates to be cut at least twice in 2024 as inflation slows in the US. Goldman Sachs stated in July that they saw a "strong case" for interest rate cuts, while the possibility of three interest rate cuts this year tested above 60 percent on Monday. Gold prices moved in a relatively narrow band until June, but rallied this month with expectations that the Fed would ease. In his speech yesterday, Fed Chairman Jerome Powell said that the latest data provided more confidence that inflation was moving towards the target. Gold prices have also found support from the purchases of central banks this year. Standard Chartered analyst Zhong Liang Han noted that gold will consolidate close to its previous record, but that there needs to be a "significant change" in Fed rate cut expectations for a new record. The expert said, "Currently, policy rate expectations are guiding prices, but if political uncertainties come back into play, this will also guide prices." Gram gold is also trading at 2,581 liras, up 0.4 percent this morning.