Spot Gold held gains on Thursday, while being close to an all-time high of $4,059.05/oz., supported by expectations of more Federal Reserve interest rate cuts this year.
The minutes of the FOMC’s September meeting showed that policy makers agreed risks to the US job market were sufficiently high to warrant a rate cut.
Yet, a majority emphasized the risks to the inflation outlook were still tilted to the upside.
Markets are now pricing in about a 92.5% chance of a 25 basis point Fed rate cut in October and an 80% chance of another 25 bps cut in December.
Meanwhile, the ongoing US government shutdown has delayed the release of essential macro data, which complicated assessments of the US economy’s state, as investors had to rely on secondary, non-government data prints.
Gold has also been supported by robust ETF demand. Data by the World Gold Council showed that global ETFs had registered an inflow of nearly $26 billion in September – a record amount for the month.
Spot Gold was last down 0.27% on the day to trade at $4,031.09 per troy ounce.
Strong central bank buying, US tariff policies, potential rate cuts by the Federal Reserve and geopolitical uncertainty have fueled Gold’s rally to a series of record highs this year. Year-to-date, the yellow metal has surged 53.61%.
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