Gold climbs as rate cut forecasts increase

Gold prices continued to climb on Tuesday, buoyed by a weakening US dollar. The greenback has been under pressure amid expectations of a future path for Federal Reserve interest rates and the release of positive economic data that has boosted risk appetite in global financial markets.

The US dollar has been steadily declining since the start of US trading on Tuesday, extending a downward trend that began late last week following the Federal Reserve’s meeting and Chairman Jerome Powell’s remarks at the Jackson Hole symposium. Powell’s comments hinted at a potential interest rate cut in September, a prospect further reinforced by statements from Federal Open Market Committee member Mary Daly, who also leaned towards a rate reduction at the upcoming meeting.

A batch of economic data has added to the pressure on the dollar, indicating a rise in US consumer confidence in August. The Conference Board’s consumer confidence index climbed to 103.3 in August, up from 101.9 in the previous month, suggesting a boost in risk appetite across global financial markets.

Gold has continued to perform strongly, reaching new record highs. Gold futures rose to $2,553, compared to the previous day’s close of $2,548 per ounce. The precious metal touched an intraday low of $2,544 and a high of $2,563.