Gold prices rise slightly, trade near all-time highs

Gold alloys

Gold prices advanced slightly today, Sept. 17, trading near all-time highs amid investor optimism about the Federal Reserve's interest rate cut this week.

Bullion for December delivery climbed by 0.10%, or $2.70, to $2,611.60 an ounce at 10:46 am Makkah time, after touching a record high of $2,617.40 during yesterday's trading. Spot prices rose by almost the same percentage to $2,585.10 per ounce.

Elsewhere, silver futures for September delivery held steady at $31.16 an ounce. Meanwhile, platinum spot prices saw a 0.32% hike to $990.77 per ounce.

Investors widely expect the Fed to slash interest rates at its policy meeting that begins today and ends on Wednesday, although views on the size of the reduction were mixed.

Expectations of an oversized 50-basis-point (bp) cut have been rising over the past few days, with the probability now at 69% versus 31% for a 25-bp reduction, according to the CME FedWatch Tool.

Gold prices could see some short-term pullback if the Fed trims rates by 25 bps, Goldman Sachs analysts said in a note. However, they reiterated their expectations for the precious metal to reach $2,700 an ounce by early 2025 as the US central bank continues to ease monetary policy.