Home Industry Finance Gold tracks down after hitting record high Gold has gained nearly 22 per cent so far this year with geopolitical tensions and uncertainty created by the upcoming US elections by Reuters August 21, 2024 Image credit: Getty Images Gold prices were trading below record high levels on Wednesday after a rally fuelled by Western fund inflows and US rate-cut optimism saw bullion hit an all-time high of $2,531.60 on Tuesday, as investors braced for minutes of the US Federal Reserve’s latest meeting for clarity on the depth of cuts. Spot gold XAU= was up 0.1 per cent at $2,517.08 per ounce, as of 0427 GMT, while US gold futures rose 0.2 per cent to $2,554.90. Gold has gained nearly $470 or 22 per cent so far this year, with geopolitical tensions and uncertainty created by the upcoming US Presidential elections and prospective rate cuts set to help power the precious metal to even loftier levels. “Gold‘s glittering rally is a reflection of markets anticipating deeper Fed cuts,” said OCBC FX strategist Christopher Wong. Gold market awaits US Fed signal Meanwhile, the dollar slipped to its lowest this year, while benchmark 10-year Treasury yields US10YT=RR also sank, making non-yielding bullion more attractive for investors. Rates as of Augus 21, 2024. Image credit: GLD Traders have fully priced a rate cut at the US Fed’s September meeting, with a 68 per cent chance of a 25 basis points cut, according to CME FedWatch tool. Traders now await minutes of the Fed’s July policy meeting due later in the day, and Fed Chair Jerome Powell’s speech on the US economic outlook this Friday at Jackson Hole. “Given that the markets have already expected deep cuts to some extent, the bar is high for Powell to out-dove markets. Some reality check may suffice and not ruling out a pullback on gold prices in the near term,” Wong added. SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.20 per cent on Tuesday from seven-month highs. “While prices look to be headed lower, bears need to tread carefully, as I suspect strong support around previous records… and dip buyers will likely be tempted to return to the table,” said City Index senior analyst Matt Simpson. Spot silver XAG= edged 0.3 per cent higher to $29.52 per ounce, platinum XPT= gained 0.6 per cent to $951.55 and palladium XPD= fell 0.1 per cent to $924.60. Read: Gold trades near historic $2,500 mark on US Fed rate-cut optimism Tags Bullion gold US Fed You might also like Oil climbs over 2% after US Fed’s Powell indicates rate cuts What to look for at US Fed’s Jackson Hole global symposium Gold trades near historic $2,500 mark on US Fed rate-cut optimism Saudi Arabia moves to tap its mineral reserves, invites bids for gold and copper mines