Gold hit a record high of $2,588.95 an ounce on Monday, helped by a weaker dollar and expectations that the Federal Reserve will cut interest rates this week for the first time since 2020, possibly by 50 basis points.
Tim Waterer, chief market analyst at KCM Trade, said, "The prospect of a 50 basis point rate cut by the Federal Reserve this week has gold and the dollar moving in opposite directions. The overall situation for gold remains favorable and may rise further. If the dollar continues to fall, gold prices may reach $2,700 an ounce by the end of the year."
All eyes will be on the Federal Reserve this week, with speculation growing about the extent of the Fed's rate cut at its September 17-18 monetary policy meeting and the pace of future rate cuts. According to the CME Fed Watch tool, the market currently expects a 59% chance of a 50 basis point rate cut on Wednesday, up from 43% last Friday. (Jinshi)