Grapevine

Gold jumps to record high on Fed rate cut outlook

Gold prices climbed to a two-week high on Thursday as U.S. Federal Reserve Chair Jerome Powell opened the door to cutting interest rates as early as September.

Gold prices charged to a record high on Monday as a weaker dollar and the prospects of aggressive U.S. monetary policy easing boosted non-yielding bullion's appeal.

Spot gold was up 0.06% at $2,578.06 an ounce after touching a record peak of $2,589.59. U.S. gold futures edged lower by 0.08% to $2,608.60.

The dollar index eased 0.4%, making gold more attractive to other currency holders.

This week's key event is the Federal Reserve interest rate decision due on Wednesday. Trader expectations are for a 59% chance of a cut of 50 basis points.

The first U.S. rate cut is getting closer and will be followed by more, supporting gold, said UBS analyst Giovanni Staunovo.