Gold prices were volatile after hitting a new peak today.
A weakening dollar and low bond yields supported the asset. Growing expectations that the U.S. Federal Reserve could announce a significant interest rate cut later this week could help maintain gold’s value.
Market participants are increasingly betting on a 50 basis point reduction after recent job reports showed a softening labor market.
However, traders could exercise caution until the Fed’s meeting on Wednesday. Market attention will also shift to upcoming policy updates from the Bank of England (BoE) and the Bank of Japan (BoJ) later this week, which could introduce further volatility and impact gold prices.
Looking ahead, the precious metal could maintain its bullish trend. Continued demand from central banks, investor concerns about the U.S. elections, and risks of an economic slowdown are likely to continue to support gold’s appeal as a safe-haven asset.
