Gold prices reached record highs on Monday due to the U.S. Federal Reserve’s interest rate cut and signs of further reductions. Spot gold remained near $2,619.37 per ounce, while U.S. gold futures edged 0.1% lower to $2,643.90.
The Fed began easing monetary policy with a half-percentage-point rate cut on Wednesday, forecasting a further half-point reduction by year-end, a full point next year, and an additional half-point in 2026.
Officials expressed differing views on the decision, with some arguing for weak inflation and others for persistent price pressures. Traders are pricing about a 51% chance of a 50-basis-point reduction in November and a 49% chance of a 25-bp cut.
This week, traders will look forward to PCE inflation data from the United States. Gold demand in India slightly improved last week but remained below normal due to record-high prices. The Bank of Japan kept interest rates steady on Friday, signaling it was in no rush to raise borrowing costs further.
