Gold price extends gain as Fed rate cut looks more likely

Gold extended its rally on Monday after last week’s economic data fueled expectations of monetary easing by the US Federal Reserve.Spot gold rose 0.3% to $3,372.48 per ounce as of 1:20 p.m. ET, near its highest in two weeks. US gold futures climbed 0.7% to $3,425.90 per ounce in New York.Click on chart for Live PricesThe yellow metal has now risen for three straight sessions, as new US economic data signalled that a Fed rate cut may be on the cards next month, which bodes well for the non-yielding bullion.According to the CME FedWatch tool, traders now see an 86% chance of a September rate cut, up from just over 63% a week ago.“The odds are stronger now for a rate cut in September and even stronger for another rate cut in December. That, coupled with the headwinds of inflation, I think is pretty bullish for gold,” said Daniel Pavilonis, senior market strategist at RJO Futures.On the tariffs front, the levies placed last week on countries — including Canada, India and Brazil — are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday.With the increased inflationary pressures from tariffs, analysts at Citigroup have raised their short-term outlook on gold, forecasting a price target of $3,600 an ounce within the next three months.(With files from Reuters) Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com