Gold hits new record

Gold hit a new record of $3,508.9 on Tuesday, led by the rising possibility that the Fed may cut rates this month during its Federal Open Market Committee meeting.

As the global fight against inflation continues, major banks’ monetary policy decisions are under the radar of investors. The Fed’s decision in particular will reveal the direction of the global economic outlook, CE Report quotes Anadolu Agency.

Central banks are struggling to find policy space amid US tariffs.

The Fed, under the constant criticism from US President Donald Trump, will be announcing its decision this month. The bank is 88% likely to issue a rate cut this month, according to money market estimates, and cut rates twice in total by the end of the year.

The US dollar index lost over the last five trading days with the growing expectations of a rate cut, while the weakening dollar and the impact of global risks pushed gold to a new high.

At the same time, silver started the week on an increase, rising as high as $40.76 per ounce on Monday — its highest since September 2011. Silver reached $40.86 per ounce on Tuesday.

Platinum has been on the rise in the last three trading days, trading at $1,426 per ounce on Tuesday.

Palladium ended Monday at $1,139 per ounce, at a 2.2% increase, while palladium declined 0.1% to $1,137 per ounce.