Stability of Gold Price Near Its Record Levels

SadaNews - The price of gold remained stable near its record levels, while investors are awaiting U.S. inflation data that could bolster expectations for interest rate cuts by the Federal Reserve.

The price of gold remained largely unchanged at around $3,635 per ounce, after surpassing $3,674 on Tuesday, when preliminary revisions showed that the number of jobs on the payrolls in the United States could be revised down by a record 911,000 jobs. The Federal Reserve is scheduled to announce its monetary policy decision next week, following the release of producer and consumer inflation data on Wednesday and Thursday.

Geopolitical Tensions and Continued Support Factors

In terms of geopolitical issues, Israel executed an unprecedented military strike targeting prominent Hamas leaders in the Qatari capital Doha on Tuesday. Separately, U.S. President Donald Trump informed European officials of his readiness to impose new tariffs on China and India, in an attempt to pressure Russian President Vladimir Putin to come to the negotiating table regarding Ukraine – provided that EU countries follow suit.

Gold has risen by about 40% since the beginning of the year, supported by central bank purchases, global tensions, and fears of the repercussions of the U.S. tariff agenda on the global economy. Inflows into gold-backed exchange-traded funds have supported prices, while financial institutions, including Goldman Sachs, expect further gains as interest rate cuts approach.

Christopher Wong, a currency analyst at Oversea-Chinese Banking Corporation, stated that traders "are reducing their positions to take profits ahead of the inflation data," noting that recent price movements reflect the market's complete pricing of monetary easing actions by the Open Market Committee.

Trump Pressures the Fed... Central Banks Buy Gold

In a notable development, President Trump's efforts to expand his influence over the Federal Reserve – amidst accusations of trying to undermine the independence of the institution – have supported gold prices. An American judge issued a temporary ruling preventing the president from dismissing member Lisa Cook, allowing her to participate in the monetary policy meeting next week, despite Trump's attempts to remove her over allegations concerning mortgages.

On the other hand, recent moves by central banks show an increasing desire to buy gold, as Czech authorities announced that their reserves have reached a record level, while data revealed an increase in the People's Bank of China's reserves. The Reserve Bank of India has also increased its gold purchases.

The price of gold rose by 0.2% to reach $3,635.25 per ounce at 10:13 AM Singapore time. Meanwhile, the Bloomberg Spot Dollar Index remained unchanged after a slight increase on Tuesday. Silver rose above $41 per ounce, while palladium and platinum also recorded gains.