Gold Prices Hold Steady as Investors Eye Federal Reserve Rate Cut
Gold prices opened nearly unchanged as investors continue to focus on the prospect of a rate cut by the Federal Reserve in September.
At 18:57 EST (22:57 GMT), prices were down 0.06% at $2,498.10.
The precious metal saw a strong performance last month, hitting a record peak of $2,531.60 on August 20. However, attention is now turning to the upcoming U.S. non-farm payroll report due on Friday.
The findings of the report will be crucial in shaping expectations for the Federal Reserve's decision on interest rates.
Traders have adjusted their expectations slightly, with a 69% likelihood of a 25-basis-point rate cut and a 31% chance of a 50-basis-point reduction, according to the CME FedWatch tool.
Despite this, demand for physical gold in major Asian markets remains subdued, with new import quotas failing to boost Chinese demand as anticipated.
**Analysis:**
In summary, the article discusses how gold prices have remained relatively stable as investors anticipate a potential rate cut by the Federal Reserve in September. Despite reaching a record high last month, attention has now shifted to the upcoming U.S. non-farm payroll report, which will influence the Fed's decision on interest rates. Traders are currently expecting a 25-basis-point rate cut, with a lesser chance of a 50-basis-point reduction. However, demand for physical gold in Asian markets has not seen a significant increase despite new import quotas. This information is essential for investors looking to understand the factors influencing gold prices and the potential impact on their investment decisions.