For the third day.. Gold prices rise to $3,370 per ounce

SadaNews - Gold prices have risen for the third consecutive day, with increasing bets on the Federal Reserve cutting interest rates, after Treasury Secretary Scott Pisent urged the U.S. central bank to lower borrowing costs.

The precious metal traded near $3,370 per ounce after Treasury yields fell on Wednesday, as Pisent suggested that the Fed's benchmark interest rate should be about 1.5 percentage points lower than it currently is. Typically, lower borrowing costs and declining yields support gold prices, as it is an asset that does not yield interest.

A shift in easing expectations

The rise in bets on interest rate cuts represents a shift from last month when markets saw less than a 50% chance of a rate cut in September. Currently, the consensus is leaning towards a quarter-point cut next month, with some betting on a larger reduction.

Gold has risen 28% since the beginning of the year, with most of these gains occurring in the first four months. Prices received support from escalating geopolitical and trade tensions that boosted demand for safe havens, in addition to purchases by central banks that helped solidify the metal's strength.

Spot gold recorded a 0.5% rise to $3,372.03 per ounce at 7:25 AM in Singapore, after rising 0.2% in the previous session. The Bloomberg dollar index fell by 0.1%. Silver, platinum, and palladium prices also rose slightly.

Markets are still awaiting an official clarification on whether U.S. imports of gold bullion will be subject to tariffs, following days of confusion that pushed the price difference for gold futures contracts in New York above the spot price in London. President Donald Trump stated on Monday that he would not impose tariffs on bullion, leading to a convergence of the two markets, but he did not provide further details.