NEW YORK — Gold futures saw an increase in recent trading, driven by a combination of demand for safe-haven assets and growing expectations for an interest rate cut by the U.S. Federal Reserve.
According to a report from Investing.com, the yellow metal rallied after comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, which led markets to increase bets on a September rate cut. The report notes that this sentiment was briefly tempered by broader market flows toward risk-driven assets, but the underlying expectation for a rate cut remains strong. A separate report from Kitco News highlights that gold’s rally was also fueled by uncertainty surrounding Federal Reserve leadership, following the firing of a Federal Reserve Governor. This development, as noted by Manoj Kumar Jain of Prithvi Finmart Commodity Research, pushed investors toward traditional safe-haven assets.
Analysts with The Times of India noted that a shift in the Fed’s focus from inflation to the job market has paved the way for a September rate cut, a positive development for gold, which is a non-yielding asset. Ventura Securities, as cited by The Times of India, projects that gold futures could reach $3,600 per ounce by the end of 2025, supported by factors like a softening U.S. dollar and sustained central bank and ETF buying.
