Gold notches record close above $2,550

Gold bars

Gold prices consolidated their gains at settlement today, Aug. 20, lifted by a weaker US dollar and growing investor confidence in the possibility of a Federal Reserve interest rate cut in September.

Bullion for December delivery rose 0.35%, or $9.30, to finish at $2,550.6 per ounce, the sixth record level since the beginning of August.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, plummeted by 0.45% to 101.44 points at 09:42 pm Makkah time, hitting the lowest level since 2024-start.

"Geopolitical uncertainties, the rise in speculative interest, and substantial global ETF inflows are further fueling the bullish trend in gold," said Joseph Cavatoni, market strategist at World Gold Council, Reuters reported.

All eyes are on tomorrow’s release of the minutes of the Fed’s July meeting, during which interest rates were fixed within the 5.25-5.50% range, seeking more clues on the future of US monetary policy.