Is Gold Set to Break Records Again as Rate-Cut Hopes Grow?
Source: Kapitales Research
Highlights:
Gold hovered near record levels as softer US inflation data strengthened expectations of further interest rate cuts.
At the time of writing, bullion was trading around US$4,335 an ounce and was up about 0.8% for the week.
Geopolitical tensions, including escalating developments in Venezuela, continued to support safe-haven demand for gold.
Bullion Holds Firm Near Historic Levels
Gold prices hovered close to record territory after fresh US inflation data strengthened expectations that interest rates could be cut further, boosting demand for the precious metal. At the time of writing, gold was trading near US$4,335 an ounce, positioning the metal for its second consecutive weekly gain.
The move followed data showing that core US inflation cooled more than expected, rising at its slowest pace since early 2021.
Inflation Data Fuels Rate-Cut Bets
The latest US consumer price figures reinforced the argument for looser monetary policy, even as economic signals remain mixed. Traders are currently pricing in roughly a 25% chance of an interest rate cut as early as January, reflecting growing confidence that borrowing costs could continue to fall.
However, the outlook remains uncertain. The recent inflation report was clouded by the impact of a prolonged government shutdown, which disrupted some data collection. Adding to the uncertainty, the US Federal Reserve, after delivering its third straight rate cut last week, has stopped short of clearly outlining how quickly it plans to ease policy further.
Geopolitical Tensions Add Support
Beyond macroeconomic factors, gold has also drawn support from rising geopolitical risks. Tensions have escalated in Venezuela after US President Donald Trump ordered a blockade of sanctioned oil tankers, increasing pressure on Caracas amid an expanded American military presence in the region. Such developments often drive investors toward safe-haven assets like gold.
Weekly Gains Keep Bulls Interested
At the time of writing, gold was up about 0.8% for the week, having edged higher by 0.1% in the latest session to around US$4,335.15 an ounce. While the metal remains below its all-time high of above US$4,381 set in October, its ability to stay near peak levels highlights continued investor appetite. With inflation easing, rate-cut expectations building, and global risks simmering, gold remains firmly in focus for markets watching whether another record run could be just around the corner
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Is Gold Set to Break Records Again as Rate-Cut Hopes Grow?
Highlights:
Bullion Holds Firm Near Historic Levels
Gold prices hovered close to record territory after fresh US inflation data strengthened expectations that interest rates could be cut further, boosting demand for the precious metal. At the time of writing, gold was trading near US$4,335 an ounce, positioning the metal for its second consecutive weekly gain.
The move followed data showing that core US inflation cooled more than expected, rising at its slowest pace since early 2021.
Inflation Data Fuels Rate-Cut Bets
The latest US consumer price figures reinforced the argument for looser monetary policy, even as economic signals remain mixed. Traders are currently pricing in roughly a 25% chance of an interest rate cut as early as January, reflecting growing confidence that borrowing costs could continue to fall.
However, the outlook remains uncertain. The recent inflation report was clouded by the impact of a prolonged government shutdown, which disrupted some data collection. Adding to the uncertainty, the US Federal Reserve, after delivering its third straight rate cut last week, has stopped short of clearly outlining how quickly it plans to ease policy further.
Geopolitical Tensions Add Support
Beyond macroeconomic factors, gold has also drawn support from rising geopolitical risks. Tensions have escalated in Venezuela after US President Donald Trump ordered a blockade of sanctioned oil tankers, increasing pressure on Caracas amid an expanded American military presence in the region. Such developments often drive investors toward safe-haven assets like gold.
Weekly Gains Keep Bulls Interested
At the time of writing, gold was up about 0.8% for the week, having edged higher by 0.1% in the latest session to around US$4,335.15 an ounce. While the metal remains below its all-time high of above US$4,381 set in October, its ability to stay near peak levels highlights continued investor appetite. With inflation easing, rate-cut expectations building, and global risks simmering, gold remains firmly in focus for markets watching whether another record run could be just around the corner
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au