Gold Price Stabilizes at $3,375 per Ounce

SadaNews - Gold prices have made slight gains as traders continue to bet that the Federal Reserve will cut interest rates at its next meeting in September.

The price of bullion stabilized at $3,375 per ounce at the beginning of Asian trading. Traders now see a 98% chance that the U.S. Federal Reserve will lower its benchmark borrowing costs when it meets next month, following weaker-than-expected job data that heightened fears about the economy. Typically, lower interest rates increase the attractiveness of gold, which does not yield interest.

Perceived threats to the independence of the U.S. central bank also enhance the metal's appeal as a safe haven. The resignation of Adriana Kugler, a Federal Reserve governor, is expected to allow President Donald Trump to appoint a figure aligned with his agenda for lowering interest rates.

Trump's Policies Pressure Gold Prices

Gold has risen more than 30% this year amid escalating trade wars, geopolitical tensions, central bank purchases, and bets on interest rate cuts.

Investors and analysts see additional gains on the horizon, with Fidelity International forecasting that the price of bullion could reach $4,000 per ounce by the end of next year.

The price of gold rose by 0.1% to $3,377.26 per ounce at 8:18 AM in Singapore, after closing up 0.3% on Monday. The Bloomberg Dollar Spot Index fell by 0.2%, while silver, platinum, and palladium prices remained stable.