Gold Maintains Its Gains for the Fifth Consecutive Week

SadaNews - The price of gold has maintained its gains for the fifth consecutive week, supported by the U.S. Federal Reserve's decision to cut interest rates for the first time this year, while investors are awaiting key inflation data to be released on Friday to determine the contours of upcoming monetary policy.

The yellow metal was traded just $20 below the record high it reached last week, after the central bank cut interest rates by 25 basis points on Wednesday. Prices fell from the historic peak after Fed Chairman Jerome Powell indicated that future decisions would be made "meeting by meeting," which limited expectations for a rapid rate cut.

Traders are anticipating this week the official economic activity data from Europe, along with the Personal Consumption Expenditures Price Index in the United States on Friday, which is the Fed's preferred measure for tracking inflation. Estimates suggest a slowdown in the index's growth last month, which could bolster the case for further cuts. Powell is also set to deliver a speech on economic forecasts on Tuesday.

Despite the caution, traders still price in two additional rate cuts this year, which has been a key driver in gold's 40% rise since the beginning of the year. Prices have also received support from safe-haven inflows amid geopolitical conflicts and the economic impacts of tariffs imposed by President Donald Trump, along with purchases from central banks and an increase in holdings of exchange-traded funds.

As of 7:36 AM Singapore time, spot gold rose by 0.1% to $3,688.40 per ounce. The Bloomberg Dollar Index increased by 0.1%, while silver and platinum prices were stable, and palladium recorded slight gains.