Gold Shrabs past $ 4.100 per ounce driven by possible interest rate cutting bets

Gold on Tuesday recorded a fresh record height above the $ 4,100 level, which by the US Federal Reserve, raised the expectations of a rate reduction this month by the US Federal Reserve and an investor flight to safety following a flare -up in trade tension between Washington and Beijing. Spot Gold hits $ 4.143 Spot Gold by 0.8% to $ 4,143.17 per ounce from 12:46 ET (1646 GMT), after beating a $ 4,179,48 record highlight earlier in the session. U.S. gold futures climb on strong investor demand US Gold futures for delivery in December rose 0.7% to $ 4,160.20. The metal rose by 57% this year and broke the $ 4.100 barrier for the first time Monday. The rally was driven by various factors, including geopolitical uncertainties, expectations of US interest rate cuts, strong purchase of central bank and robust ETF inflow. Analysts at Bank of America and Societe Generale now see that gold reaches $ 5,000/oz in 2026. “The Uptick in the trade in the US China, the continued downturn of the government, and the expectations of further relief from the Fed, support everyone,” said Peter Grant, Vice President and Senior Metal Strategist at Zaner Metals. US President Donald Trump’s threats to set up 100% rates on Chinese goods, a roll-off of tit-for-tat port fees through the two largest economies and a broader macro trend of de-dollarization could push gold to $ 5,000/oz by the next year. Trump will meet Chinese leader Xi Jinping in South Korea later this month, Treasury Secretary Scott Besent said on Monday. Non-yielding gold tends to do well in low interest rate and markets expect a 25-based rate cut this month at the Fed meeting, followed by a similar reduction in December. “Based on the data we do have, it is fair to say that employment and inflation prospects have not changed much since our September meeting four weeks ago,” Fed chairman Jerome Powell said during his speech at the National Association for Business Economics annual meeting. Spot Silver, which is by the same factors that drive gold and density in the place market, hit a record of $ 53.60/oz before withdrawing 1.4% to $ 51.63. Platinum rose 0.2% to $ 1,649.50 and palladium rose 3.5% to $ 1,523.73.