Gold Price Continues to Rise on Expectations of Easing US Monetary Policy
On Monday, August 4, the price of gold continued its upward trend for the third consecutive day, driven by growing expectations of an easing of US monetary policy. As of 13:15 GMT, spot gold was trading at $3,373.22 per ounce, a level not seen since July 24. Meanwhile, US gold futures contracts were up 0.8%, breaking the $3,427 barrier.
This surge is largely attributed to the prospect of a September interest rate cut, encouraged by recent employment data that was weaker than expected. In this context of economic uncertainty, gold is regaining its status as a safe-haven asset, with investors turning to it to secure their capital.
The FedWatch tool, developed by the CME, estimates an 85% probability of a rate cut at the next Federal Reserve meeting, up from 63% just a week ago. This shift in expectations reflects growing confidence in the idea of an easing.
On the international trade front, Washington is maintaining the tariffs imposed under the Trump administration, affecting several countries, including Canada (35%), Brazil (50%), and India (25%).
Among other precious metals, silver recorded a 0.8% gain, while platinum rose 0.5%. In contrast, palladium experienced a more significant decline, falling 1.9% to its lowest level in two weeks.
