Gold breaks $2,700 to all-time high ahead of Fed decision

Gold prices surged above $2,700 per ounce to reach a new all-time high, gaining over 1.2% as traders position ahead of Wednesday's Federal Reserve policy decision. Strong US retail sales data and higher import prices initially supported the dollar, but persistent labor market weakness has solidified expectations for a 25 basis point rate cut - the first since December. Markets are pricing in additional easing through 2025 and into 2026, weakening the dollar and boosting gold's appeal. Technical analysis shows the August lows found strong support above the 100-day moving average at $2,650, reinforcing the bullish trend. The precious metal's rally reflects both safe-haven demand and expectations of lower real yields. Immediate resistance sits at the psychological $2,750 level, while support has formed at $2,680. Traders await the Fed's dot plot projections, which could trigger further volatility in both gold and currency markets.