Gold eases after hitting record high above $2,500

Gold prices eased on Monday after reaching an all-time high above $2,500 per ounce in the previous session, driven by strong safe-haven demand and expectations of an imminent US rate cut.

Spot gold dipped 0.4% to $2,496.46 per ounce, just $13 below Friday's record high of $2,509.65. U.S. gold futures also edged 0.1% lower to $2,534.80, News.Az reports citing Reuters.

Last week, strong U.S. retail sales print and lower-than-expected unemployment claims, along with mild inflation data, restored confidence in the world's largest economy.

Traders expect U.S. Fed will cut rates next month and are fully pricing in a 25-basis-point rate cut in September, with a 28.5% chance of a 50 bp move, according to CME FedWatch tool.

Bullion has surged over 20% this year, fueled by expectations of U.S. interest rate cuts this year, coupled with rising geopolitical tensions and strong central bank buying.

Demand for gold remains potent as geopolitical tensions, particularly in the Israel-Iran-Hamas conflict, is driving safe-haven demand, Achilleas Georgolopoulos, investment analyst at forex broker XM, wrote in a note.
Elsewhere, spot silver fell 0.2% to $28.95 per ounce, platinum eased 0.3% to $951.75 and palladium shed 0.9% to $942.50.

News.Az