Gold prices rose sharply on Tuesday, pushing the metal to near $4,150 per ounce, as investors increasingly bet on a cut in US Federal Reserve interest rates in December. The XAU/USD pair attracted some buyers during the early Asian session, with prices jumping around $4,140 before easing slightly.
Growing expectations of a rate cut have been driving gold prices higher in recent weeks, as investors become more optimistic about the economic outlook. The Fed’s decision on interest rates is expected to be announced at its next policy meeting on December 14th.
Industry experts say that if the Fed cuts interest rates, it could boost demand for gold from investors seeking safe-haven assets. Gold is often seen as a hedge against inflation and rising interest rates.
The price of gold has risen by more than 10% in 2023 so far, making it one of the best-performing asset classes this year. This is partly due to the growing expectations of a rate cut, which could signal that the economy is slowing down.
However, some analysts say that gold prices may be due for a correction. They point out that the metal’s price has risen sharply in recent weeks, and that there are signs that the economic outlook may be improving.
Overall, gold prices continue to be influenced by market expectations of interest rate cuts. As the Fed’s decision approaches, investors will be watching closely to see how it affects the precious metal.
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