Grapevine

Gold nudges higher on mounting U.S. rate cut bets

An employee handles one kilogram gold bullions at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023.

Gold prices edged higher on Tuesday after comments from Federal Reserve officials reinforced expectations of bigger U.S. interest rate cuts later this year.

Spot gold was up 0.1% to $2,408.77 per ounce as of 0354 GMT. Bullion fell to its lowest since July 26 in the previous session, caught in a global sell-off driven by fears of a U.S. recession.

U.S. gold futures rose 0.2% to $2,449.50.

U.S. central bank policymakers pushed back against the notion that weaker-than-expected July jobs data means the economy is in a recessionary freefall, but also warned that the Fed will need to cut rates to avoid such an outcome.

Fed San Francisco President Mary Daly said her mind was open to cutting interest rates as necessary and policy needed to be proactive.