Gold advances on rate-cut bets

Gold prices held steady in Asian trading on Wednesday, consolidating strong gains made this month as hopes grow for early interest rate cuts by the U.S. Federal Reserve.

The precious metal has rallied sharply in recent weeks after the Fed signalled a pause in its aggressive rate hike campaign. Markets are now betting on rate cuts as soon as March 2024 amid cooling inflation.

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Dollar hits multi-month lows against G10 currencies

Gold recently brushed off minor resistance to come within striking distance of its record peak of $2,135 an ounce hit earlier this month. Prices have been driven higher by the Fed’s policy pivot, which has fueled a melt-up since the start of December.

Spot gold has continued its advance this afternoon and is currently trading at $2,081.70 per ounce by 16:50 GMT on Wednesday, taking a breather after yesterday’s gains.