XAU/USD approaches record highs above $2,650 on Fed rate cut expectations

Gold prices surge toward record territory, with XAU/USD climbing 1.2% to $2,652 per ounce as aggressive Federal Reserve rate cut expectations drive renewed buying interest. Markets are pricing in a 65% probability of a 50 basis point cut at the November FOMC meeting, following recent softer US economic data. The dollar index has weakened 0.8% to 100.20, providing additional tailwind for the precious metal. EUR/USD benefits from dollar weakness, advancing to 1.0680, while GBP/USD pushes above 1.3150. Technical indicators show gold testing resistance at the all-time high of $2,658, with momentum oscillators in overbought territory. Support has formed at $2,635, coinciding with the previous week's high. Traders are monitoring upcoming US GDP and PCE inflation data for further directional cues. The sustained rally in gold reflects persistent concerns about monetary policy divergence and ongoing geopolitical tensions supporting safe-haven demand.