Gold Hits New Record High Above $2,650 on Fed Rate Cut Bets

Gold prices surged to a fresh all-time high of $2,652 per ounce, gaining 1.2% as markets increasingly price in Federal Reserve rate cuts for the coming meetings. The precious metal's rally reflects growing expectations that the Fed will need to ease monetary policy amid signs of economic slowdown. This development has weakened the US dollar index by 0.4% to 102.50, providing additional support for gold. The inverse correlation between gold and USD continues to influence forex markets, with EUR/USD advancing to 1.0920 and AUD/USD climbing above 0.6850. Technical analysis shows gold facing minimal resistance with next psychological target at $2,700. The sustained bullish momentum in gold suggests continued dollar weakness ahead, potentially benefiting major currency pairs against the greenback. Traders are closely monitoring upcoming Fed communications for confirmation of the dovish policy shift.