Gold prices hit record highs as the Fed is expected to cut interest rates by 50 basis points this week

Gold prices hit a record high of $2,588.95 an ounce on Monday, driven by a weaker dollar and market expectations that the Federal Reserve will cut interest rates by 50 basis points this week.

Tim Waterer, chief market analyst at KCM Trade, said that the prospect of a 50 basis point rate cut by the Federal Reserve this week has caused gold and the U.S. dollar to move in opposite directions. The overall situation for gold remains favorable, and the price of gold may reach $2,700 per ounce by the end of the year.

There is increasing speculation about the extent of the Fed's interest rate cuts at its September 17-18 monetary policy meeting and the pace of future rate cuts. According to CME's FedWatch tool, the market is pricing in a 59% chance of a 50 basis point rate cut on Wednesday.