Spot Gold hits record high, surpasses $2,500 an ounce as Fed Rate cut expectations grow

Gold has gained more than 20% in value this year, driven by increasing expectations of monetary easing and substantial purchases by central banks looking to diversify their reserves amid global economic uncertainties.

Spot Gold prices soared to a record high on August 16, topping $2,500 an ounce, as increasing optimism that the U.S. Federal Reserve is nearing an interest rate cut fueled demand for the precious metal.

Bullion for immediate delivery touched $2,500.16 an ounce, surpassing the previous all-time high set last month. The surge followed a disappointing report on the U.S. housing market, which reinforced expectations that the Fed may implement swift and significant rate cuts to support the economy.

The prospect of lower interest rates is typically bullish for gold, as the metal does not yield interest, making it more attractive to investors during periods of declining rates.

Gold has gained more than 20% in value this year, driven by increasing expectations of monetary easing and substantial purchases by central banks looking to diversify their reserves amid global economic uncertainties.