Gold Prices Near Record High as Rate Cut Confirmed for September

Gold prices remained close to their record highs after Federal Reserve Chairman Jerome Powell confirmed expectations
that the U.S. central bank will begin cutting interest rates next month.

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Gold Prices Stabilize After Powell’s Remarks

Additional Factors Supporting Gold’s Rally

Gold Prices Stabilize After Powell’s Remarks

Gold was traded near $2,510 per ounce after rising 1.1% last Friday.
Speaking at the Jackson Hole conference in Wyoming,
Powell indicated that “the time has come” to shift toward monetary easing while
also emphasizing the need to prevent further slowing in the U.S. labor market.
Typically, lower interest rates increase the appeal of gold as a safe haven,
as it does not yield interest, unlike Treasury bonds.

Additional Factors Supporting Gold’s Rally

Gold prices have surged more than 20% this year, driven by optimism
that the Federal Reserve is nearing a long-anticipated shift towards rate cuts.
Prices have also been bolstered by demand for safe-haven assets due to rising geopolitical risks
and uncertainty ahead of the U.S. elections in November,
as well as purchases by central banks and Asian consumers.

Gold Prices Near Record High as Rate Cut Confirmed for September

Gold Prices Near Record High as Rate Cut Confirmed for September

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