Bullion hit a record high of $2,670.43 on Wednesday
Gold prices were steady on Thursday, staying close to record highs, on expectations of another big U.S. rate cut this year, although gains were limited ahead of remarks by Fed policymakers later in the day.
Spot gold was 0.2% higher at $2,661.25 per ounce, as of 0334 GMT. Bullion hit a record high of $2,670.43 on Wednesday. U.S. gold futures were steady at $2,684.50.
A mild jump from the U.S. dollar has managed to keep the gold price in check, however with markets still expecting more aggressive cuts from the Fed between now and year-end, the risk seems to be to the upside for the gold market, according to Tim Waterer, chief market analyst at KCM Trade.
Bullion has risen around 29% so far this year and reached record highs several times this year, largely fuelled by monetary policy easing by global banks and geopolitical concerns.
Last Wednesday, the Federal Reserve delivered a 50 bp rate cut, with traders seeing a 62% probability of an additional half-percentage-point cut in November, as per the CME FedWatch Tool.
Fed Chair Jerome Powell is set to give opening remarks at a conference on Thursday, where New York Fed President John Williams and Fed Vice Chair for Supervision Michael Barr are also scheduled to speak.
Moreover, U.S. jobless claims data on Thursday and the core PCE index – the Fed’s preferred inflation – on Friday, will be eyed for further rate hints.
Gold prices are currently wavering within a range of $2,610 to $2,690, showing an upward trend, unless the PCE or labour figures exceed expectations, according to Nicholas Frappell, global head of institutional markets at ABC Refinery.
