Gold Rebounds on Rate Cut Expectations and Safe-Haven Appeal

Gold prices rose on Wednesday, driven by safe-haven demand and increasing expectations of a U.S. Federal Reserve interest rate cut as early as September. The precious metal gained support from geopolitical tensions and a looser monetary policy outlook, despite closing lower in the previous four sessions. Traders now see a 100% chance of a rate cut in September, with nearly 105 basis points of cuts anticipated by year-end. Gold’s non-yield-bearing status makes it attractive in a low-interest-rate environment, while strong central bank buying has also contributed to its positive performance in 2024.