Gold Hits Record Highs as Fed-Cut Bets Waver

Gold has surged to fresh record highs near $3,790 an ounce and is up more than 40% year-to-date, on track for its biggest annual gain since 1979. The rally has been driven by markets pricing in U.S. rate cuts later this year, heavy central-bank and sovereign buying (including China’s push to have foreign central banks buy and store gold via the Shanghai Gold Exchange), and large ETF inflows, with geopolitical tensions reinforcing safe-haven demand. Fed Chair Jerome Powell’s cautious, data-dependent remarks this week have cooled some cut bets, lifted U.S. Treasury yields and the dollar, and prompted profit-taking that pulled bullion off its peak. Traders are focused on upcoming U.S. data (GDP, initial jobless claims and the Core PCE gauge) for further direction as markets still price in two 25-bp cuts later this year. Silver and other precious metals trade near multi-year highs, Bitcoin has lagged, and near-record retail prices from Dubai to India are squeezing some buyers.