Gold inches closer to record highs amid global uncertainty

Gold remained steady in Asian trade on Tuesday, hovering near all-time highs as economic concerns and hopes of an interest rate cut buoyed demand for the safe-haven asset.

Spot gold (XAU/USD) was trading at $2,115.30 per ounce by 07:45 GMT, just $20 shy of its record high. This comes amidst global economic uncertainty, with signs of a slowdown in the U.S., potential recessions in Europe and Japan, and underwhelming growth forecasts from China.

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Investors are also keeping an eye on upcoming economic events from the U.S., including testimony from Federal Reserve Chair Jerome Powell and nonfarm payrolls data, which could influence the Fed’s decision on future interest rates. While higher interest rates typically put downward pressure on gold prices, some market participants are anticipating a potential pause or even a cut in rates, which could further bolster gold’s appeal.

Technically, with no major resistance levels above the all-time high, gold could be poised to break its record high if the bullish trend continues.