$XRP

Gold price rises to record high, global focus on Fed's upcoming rate cut

Spot gold continued to rise on September 12, hitting a record high above $2,550, after U.S. inflation data again exceeded expectations and initial jobless claims rose, confirming bets that the Fed will cut interest rates next week. "A combination of factors, including the ECB's rate cut, a small increase in initial jobless claims and PPI, are enough to push gold prices to a record high," said Ole Hansen, head of commodity strategy at Saxo Bank. Swap dealers consolidated bets on a 25 basis point rate cut at the Fed's interest rate meeting next week after the August CPI rebounded on Wednesday. Hansen added that for the gold market, the start of a rate cut cycle could add support, regardless of the size of the cut. Gold prices have risen by more than a fifth this year, with growing expectations that the Fed will soon start a rate cut cycle supporting the recent strength of gold prices. Strong central bank buying and solid demand in the over-the-counter market also drove gold's gains.