Tue Sep 17 04:16:48 UTC 2024: ## Gold Holds Near Record Highs as Investors Anticipate Fed Rate Cut

**New York, September 18, 2023** – Gold prices dipped slightly in Asian trading on Tuesday but remained close to record highs, fueled by investor expectations that the Federal Reserve will announce a substantial interest rate cut this week.

The yellow metal reached an all-time high on Monday, trading just below that mark as traders factored in a 50 basis point rate cut by the Fed, scheduled to conclude its two-day meeting on Wednesday. The strength in gold followed weakness in the dollar and Treasury yields.

Spot gold fell 0.2% to $2,578.03 an ounce, while December gold futures decreased by 0.1% to $2,605.05 an ounce.

Market analysts predict a 68% likelihood of a 50 basis point rate cut, with a 32% chance of a 25 basis point reduction. Lower interest rates are generally positive for gold and other precious metals, as they reduce the opportunity cost of investing in non-yielding assets. The Fed is expected to signal the start of an easing cycle this week, which could see interest rates drop by over 100 basis points by year-end.

Gold has also benefited from robust central bank buying, particularly in emerging markets, contributing to its outperformance against other precious metals.

Platinum futures rose 0.2% to $990.50 an ounce, while silver futures stabilized around $31.145 an ounce.

Among industrial metals, copper prices saw a slight increase on Tuesday, also driven by the weaker dollar and anticipation of lower interest rates. However, gains were tempered by concerns about China, a major copper importer, following a series of weak economic indicators for August. Benchmark copper futures on the London Metal Exchange rose 0.1% to $9,388.50 a ton, while one-month copper futures climbed 0.3% to $4.2770 a pound.

The weak readings from China have further intensified bets on additional stimulus measures from Beijing to support the economy.

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