Gold Sustains $3,600 Level Amid Fed Rate Cut Expectations

Gold has recently entered a consolidation phase after reaching record highs above $3,600 per ounce, with a pause in its rally likely due to much of the macroeconomic news already priced in by the market. The Federal Reserve is expected to cut interest rates soon, which, along with weak U.S. employment data, supports a bullish outlook for gold as an asset. Since November 2022, gold has more than doubled in price, outperforming major stock indices, bonds, currencies, and even bitcoin, driven by strong central bank buying and expectations of looser U.S. monetary policy. Expert consensus from major financial institutions and investors highlights gold as a critical asset for wealth protection and growth, no longer limited to niche investors. However, recent trading activity shows reduced volume and a flattening open interest curve, suggesting investors may adopt a wait-and-see approach until the Federal Reserve's next move. Overall, while gold's momentum has paused near record highs, its long-term outlook remains positive due to economic and geopolitical factors.