Gold Breaks $2,650 as Fed Rate Cut Bets Pressure USD
Gold prices surged to a new all-time high of $2,652 per ounce, gaining 1.2% as Federal Reserve rate cut expectations intensify and weaken the US dollar. The Dollar Index retreated 0.5% to 103.25, its lowest level in three weeks. EUR/USD capitalized on dollar weakness, rising 0.4% to 1.0855, while USD/JPY dropped 0.7% to 149.10. Markets are now pricing in an 80% probability of a 25-basis-point Fed rate cut in December, up from 60% last week, following softer-than-expected US consumer confidence data. The precious metal's rally accelerated after breaking above the previous resistance at $2,635, with momentum indicators suggesting further upside potential. Technical analysis points to the next target at $2,675. The inverse correlation between gold and the dollar remains strong, with traders using gold as a hedge against currency depreciation and potential economic uncertainty.
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