Gold prices steadied near record highs on Tuesday, with traders weighing expectations of a Federal Reserve rate cut and persistent geopolitical risks against a rebound in the US dollar.
By 3:35 pm AEST (5:35 am GMT), spot gold was up $19, or 0.6%, at $3,495.63 per ounce, after touching an all-time high of $3,508.79 earlier in the session.
The precious metal has now logged a six-day winning streak, underpinned by safe haven flows linked to Russia-Ukraine tensions and growing expectations of a September Fed rate cut.
However, a modest rebound in the U.S. dollar has tempered further upside.
The greenback staged a short-covering bounce from one-month lows, fuelled by profit-taking ahead of key U.S. economic data this week.
Investors are awaiting the ISM Manufacturing PMI later today, with the headline index forecast to edge up to 49 in August from 48 in July, while remaining in contraction.
Market bets on monetary easing remain firm, with the CME Group FedWatch Tool showing an 89.7% probability of a 25 basis-point cut at the Fed’s 17 September meeting.
Political uncertainty has also lent support to bullion. Concerns over the Fed’s independence persist, with President Donald Trump pushing for more dovish appointments to the central bank.
At the same time, his recent attempts to mediate between Russia and Ukraine have faltered, with Ukrainian President Volodymyr Zelenskyy vowing fresh strikes inside Russia following weeks of intensified attacks on energy facilities.
Silver also extended gains, adding 0.8% to $40.79 per ounce, its highest since 2011.
