Gold rose to a record high as markets waited for the Federal Reserve to begin easing monetary policy for the first time in more than four years.
Bullion climbed as much as 0.4% to a high of $2,589.03 an ounce in Asia hours, following its 3.2% gain last week, ahead of the Fed’s Sept 17-18 meeting that’s widely expected to result in a rate cut of at least 25 basis points.
Still, opinions are divided on the pace of the US central bank’s future easing path, with some traders and economists now expecting a larger, half-point reduction this week. Lower borrowing costs are often seen as bullish for gold, which doesn’t bear interest.
The precious metal was also supported by a weaker US dollar, which fell after an apparent assassination attempt against former President Donald Trump.
Gold has gained more than a quarter this year and hit its previous high on Friday, supported by the Fed’s signals it would pivot to monetary easing. Central-bank buying and strong haven demand due to conflicts in the Middle East and Ukraine have helped the advance. Interest from retail investors is also picking up.
Spot gold was up 0.3% to $2,585.49 at 11:2am in Singapore. The Bloomberg Dollar Spot Index dipped 0.2%, after declining 0.8% over the previous three sessions. Silver and platinum rose, while palladium was little changed.