By Fadi Al Kurdi, Founder & CEO, FFA Kings
Gold hit another record high on Monday, building on momentum from last week’s Federal Reserve rate cut and guidance that further easing is likely as the labour market weakens. Investors priced in two additional 25-basis-point reductions this year, one in October and another in December, with high probabilities. Expectations of continued monetary loosening have reinforced demand for the non-yielding asset.
Attention now turns to upcoming macro signals, including Friday’s release of the Fed’s preferred inflation gauge, the core PCE index, and remarks from Chair Jerome Powell and other policymakers. Softer inflation or dovish rhetoric could keep the bullish momentum intact, potentially leading to breaking new records.
Geopolitical risks provided an additional tailwind. Tensions continued to increase in Eastern Europe and the Middle East, reinforcing safe-haven demand.