Commodities
Gold Surges to Three-Month High Amid Rate Cut Bets
Gold prices have surged to a three-month high as investors bet on a Federal Reserve rate cut. The precious metal has found support around $2,320 per ounce and is now trading near $2,380.
The latest advance in gold is largely attributed to shifting market sentiment around U.S. monetary policy. Futures traders are pricing in a more than 70% chance of a rate cut by September, according to the CME FedWatch Tool.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it more appealing to investors. The U.S. dollar index has also slipped to a three-month low, making gold cheaper for holders of other currencies and boosting demand.