Gold prices hit a new record high of $3,698.94 on Tuesday. The XAU/USD index spiked nearly 17 points in the day’s session with a surge of 0.7%. The commodity is extremely bullish with the backing from retail investors, institutional funds, and central banks. All three sections of investors are heavily investing in the commodity and reaping the benefits of the bull run.
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Gold Prices Hit New All-Time High
Gold prices are on the brink of reaching the $3,700 mark and could reach there in today’s trading session. Several analysts and leading global financial banks previously predicted that the precious metal would reach the $3,700 range by the end of 2025. The forecast has turned accurate as the XAU/USD index is only surging.
Demand for gold has not decreased in two years, as consumption has surged tenfold, leading to higher prices. The rise on Tuesday also comes as the Fed is expected to cut rates by 25 bps. A small section of commentators also believes that the Fed could cut the interest rate by 50 bps. However, we will know only after Powell announces during today’s meeting.
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“Markets are all but certain the Fed will deliver a 25bps rate cut on Wednesday, the first since December, with growing expectations that the easing cycle could extend into next year. Attention will also be on the Fed’s quarterly Summary of economic projections, including the closely watched dot plot, as well as Chair Jerome Powell’s press conference for signals on the future policy path,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities to Mint.
The precious metal could also reach the $4,000 mark if it holds on to the momentum. Traders who invested in gold are making stellar profits as prices are only heading north. The glittery metal has dipped only a few times this year but managed to bounce back quickly.
