Gold Holds Near $2,500 Record as Fed Rate Cut Speculation Grows

Gold (XAU/USD) consolidates near record highs at $2,498, up 0.2% as traders position ahead of the Federal Reserve's next policy decision. The precious metal has gained 21% year-to-date, supported by expectations of 55bps in Fed rate cuts by December and ongoing geopolitical tensions. Lower real yields continue to enhance gold's appeal as a non-yielding asset, with the 10-year TIPS yield at 1.85%. Technical indicators show strong bullish momentum, with immediate resistance at the psychological $2,500 level and support at $2,470. A break above $2,500 could trigger acceleration toward $2,550, while any hawkish Fed surprise might prompt profit-taking toward $2,450. Central bank gold purchases remain robust, adding fundamental support. The metal's correlation with real rates suggests further upside if US employment data disappoints this week, potentially pushing Fed easing expectations higher.