Gold prices hit another record as rate cut bets boost demand
ISTANBUL
The price of gold hit a record high on Sept. 29 following U.S. inflation figures that met expectations and soothed concerns about U.S. President Donald Trump's latest tariff salvo.
The price of gold fluctuated between $2,536.91 and $3,819.80 over the past 12 months, surging 41.5 percent during the same period.
Gold prices continued their upward trend, led by geopolitical risk, concerns over the global economy, central banks’ gold demand and the Fed’s rate cut cycle.
Following Trump's insistence, the Fed cut its policy rate by 25 basis points last week.
For the Fed's October and December meetings, markets expect new rate cuts.
Weak inflation figures and increasing unemployment data, as well as Trump, pushed the Fed to lower rates.
Gold spiked to a fresh peak just short of $3,820 an ounce on Sept. 29 on expectations for more rate cuts, which make the precious metal more attractive as an investment.
Oil prices sank on speculation that OPEC+ will increase output, fanning concerns of a glut.
The drop followed last week's rally on the back of mounting tensions between NATO countries and Russia, increasing the possibility of fresh sanctions on Moscow.
