Gold hovers near record high.. All eyes on inflation data and "Powell"'s statements
Gold prices maintained their trading near the all-time high on Monday, as financial markets awaited important U.S. inflation data and several scheduled speeches from Federal Reserve officials this week.
Futures contracts for December gold rose by 0.6% to reach $3727.2 per ounce. Meanwhile, the spot price of the precious metal increased by 0.3% to record $3692.79 per ounce.
Investors are closely awaiting the release of the Personal Consumption Expenditures Index in the United States on Friday, which is considered the Federal Reserve's preferred measure of inflation.
At least 12 Federal Reserve officials are scheduled to give speeches this week, led by Fed Chair Jerome Powell on Tuesday, as investors look for new signals regarding future monetary policy paths.
This comes after the Fed lowered the interest rate by 25 basis points last week, warning of ongoing inflationary pressures, raising questions about the expected pace of monetary easing.
Commenting on the scene, Tim Waterer, Chief Market Analyst at KCM Trade, said: "Gold prices are back near the $3700 level, and we may see new highs this week if U.S. macroeconomic data continues to provide signals that allow the Federal Reserve to further lower rates."
Waterer added: "A combination of the Federal Reserve's stance on monetary easing and ongoing demand from central banks is providing momentum in favor of gold."
According to the financial tool "FedWatch", investors widely expect two additional rate cuts this year of 25 basis points each in October and December, with probabilities of 93% and 81% respectively.
It is worth noting that gold, which is considered a safe haven that typically benefits from lower interest rates, has risen by more than 40% since the beginning of the year, driven by geopolitical and economic uncertainty, along with strong purchases from central banks and a wave of global monetary easing.
