On Tuesday, gold prices reached an unprecedented peak, bolstered by increasing anticipations of additional rate reductions in the United States and a marginally depreciated dollar. Investors are keenly awaiting insights on policy from Federal Reserve Chair Jerome Powell’s forthcoming speech. Spot gold experienced an increase of 0.2%, reaching $3,752.43 per ounce as of 0123, following a peak of $3,758.03 earlier in the session.

U.S. gold futures for December delivery increased by 0.3%, reaching $3,787.60. The U.S. dollar index experienced a decline of 0.1%, resulting in a reduction in the price of gold for international purchasers denominated in dollars. Market participants are keenly anticipating Powell’s address, scheduled for 1635, for indications regarding the central bank’s policy direction, in conjunction with comments from other Federal Reserve officials this week. New Federal Reserve Governor Stephen Miran stated on Monday that the Fed is misinterpreting the tightness of its monetary policy and risks jeopardizing the job market without substantial rate cuts.

This perspective was challenged by three of his colleagues, who believe that the central bank should exercise caution regarding inflation. Last week, the U.S. central bank reduced rates by 25 basis points, referencing labor market conditions and suggesting that further cuts are anticipated in forthcoming meetings, while also cautioning about persistent inflationary pressures. Reports indicates that investors assign a 90% likelihood to a 25-basis-point rate cut in October, along with a 75% probability of an additional cut in December. The SPDR Gold Trust, recognized as the largest gold-backed exchange-traded fund globally, reported an increase in its holdings by 0.60%, reaching 1,000.57 tons on Monday, up from 994.56 tons on Friday.

Safe-haven gold, which typically performs well in a low-interest-rate environment, has risen nearly 43% this year, driven by broader geopolitical and economic uncertainty, central bank buying, and monetary policy easing. Meanwhile, spot silver decreased by 0.2% to $43.98 per ounce, remaining close to a 14-year peak. Platinum experienced an increase of 0.3%, reaching a value of $1,420.45, while palladium saw a rise of 0.9%, climbing to $1,189.84.