Gold prices held steady near their record highs on Tuesday morning, as investors turned their attention to the upcoming release of the Federal Reserve’s policy meeting minutes and inflation data later this week. These events could influence the central bank’s decision-making on interest rates, which in turn impacts gold’s appeal.
While the precious metal is technically considered overbought, it hasn’t stopped its momentum. Spot gold (XAU/USD) was trading at $2,346.85 per ounce by 60:45 GMT, just below its record high of $2,353.79 set on Monday.
Berto Tordecilla
The Fed’s policy meeting minutes on Wednesday could offer clues on the pace of future rate cuts. Though the Fed initially projected three cuts by year-end, a strong jobs report last week led the market to revise its expectations downwards to potentially two cuts. Higher interest rates typically decrease the attractiveness of non-interest-bearing gold.
Inflation data, also released Wednesday, could pose a risk if it comes in hotter than expected. However, gold’s resilience to rising bond yields this week suggests a continued bullish outlook for the yellow metal in the medium term.
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