Gold Prices Rise on Fed Rate Cut Speculation Ahead of Key Meeting

31 July 2024

Gold prices rose by about 1% on Tuesday, driven by investor optimism that the U.S. Federal Reserve may hint at future interest rate cuts during its policy meeting this week.

Spot gold increased to $2,403.47 per ounce, while U.S. gold futures settled at $2,451.9. Analysts suggest that potential rate cuts in the U.S. and Europe, along with economic uncertainties, are supporting gold prices. Lower interest rates reduce the opportunity cost of holding non-yielding bullion, making it more attractive to investors.

The market is also closely watching upcoming U.S. employment data for further cues.

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