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Fed rate cuts, Middle East Unrest Boost US spot gold




Gold prices up with anticipated Fed rate cuts, and dollar stability reflects rate cut speculation.Fed rate cuts weaken the dollar, enhancing gold’s appeal to foreign investors, while escalating Middle East tensions boost its safe-haven allure.


US spot gold prices saw an uptick on Tuesday, primarily driven by expectations of Federal Reserve rate cuts in 2024. Investors are closely monitoring upcoming economic data for further insights into the U.S. rate trajectory. XAU/USD last traded at 2075.82, marking a 0.62% increase.


The dollar showed stability as traders evaluated the likelihood of significant interest rate reductions by the Federal Reserve next year. The dollar index slightly rose, reflecting a shift in market sentiment towards potential rate cuts. Traders are now heavily anticipating a Fed move, with the CME FedWatch tool indicating an 86% probability of rate cuts starting from March.



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