Gold prices snap record peak on Fed cut expectations

Gold alloys

Gold prices extended their gains today, May 20, hitting a record high amid US interest rate cut expectations and the metal's appeal as a safe haven to hedge against inflation risks and geopolitical woes.

Bullion for June delivery leapt by 1.05% to $2,442.80 per ounce at 08:10 am Makkah time, after ending last week’s trading up 1.8%. Further, spot prices advanced 0.98% to $2,438.85 an ounce, after touching $2,440.49 per ounce earlier in the session — an all-time high.

Likewise, silver futures for July delivery jumped 4% to $32.51 an ounce, after climbing to the highest level in over 11 years, with platinum spot prices also soaring 0.32% to $1,088.92 per ounce.

Today’s record hikes in the precious metal’s prices came against the backdrop of growing expectations of interest cuts in the US. Investors are pricing in a 65% chance that the Federal Reserve will reduce borrowing costs at the upcoming September meeting.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, held ground at 104.42 points.