Gold Prices Near Record Levels

Gold is holding near record levels on Monday due to expectations of a Federal Reserve rate cut and a weaker dollar supporting precious metal prices.

The recent surge in gold prices was primarily driven by speculation about a potential interest rate cut by the US Federal Reserve in September.

As of 05:12 ET (09:12 GMT), spot gold was down 0.2% at $2,5031.78 an ounce, while gold futures rose 0.1% to $2,540.65 an ounce, nearing the all-time high of $2,509.65 reached on Friday.

Gold prices peaked last week, fueled by the expectation of a Fed interest rate cut in September.

This surge, over 20% in price increase this year, is attributed to rising geopolitical tensions, strong central bank purchases, and renewed economic confidence.

Recent U.S. economic data, including stronger-than-expected retail sales, lower unemployment claims, and mild inflation figures, have increased optimism regarding a potential Fed rate cut.