Gold rises with US rate cut bets and the Middle East conflict

Gold Prices Rise on Rate Cut Bets and Safe-Haven Demand Amid Gaza Uncertainty

Gold prices climbed on Tuesday, supported by expectations of potential interest rate cuts by the Federal Reserve later this year and increased demand for the precious metal as a safe haven amid uncertainty surrounding the ceasefire in Gaza.

• Price Movement: Gold in spot transactions edged up 0.1 percent to $2,324.75 per ounce by 0148 GMT, following a gain of over one percent in the previous session. Similarly, US gold futures rose 0.1 percent to $2,334.30 per ounce.
• Fed Rate Cut Speculation: New York Federal Reserve Bank President John Williams hinted on Monday at the possibility of the US central bank cutting interest rates at an unspecified time. While he didn’t provide a specific timeline, he noted that the economy was gradually moving towards a better balance. Traders are anticipating a 64 percent chance of a federal interest rate cut in September, according to CME’s Fed Watch tool. Lower interest rates typically increase the appeal of gold as it doesn’t yield interest.
• Middle East Conflict Impact: Investors are closely monitoring developments in the Middle East conflict. On Monday, Hamas agreed to a ceasefire proposal in Gaza presented by Egypt and Qatar. However, Israel expressed dissatisfaction with the conditions and continued strikes on Rafah while planning to pursue negotiations on the agreement.
• Other Precious Metals: In other precious metals, silver dipped 0.4 percent to $27.34 per ounce in spot transactions, while platinum saw a 0.4 percent increase to $957.90 per ounce.