International gold prices up 0.9% ahead of US interest rate decision…record high
Summary
- International gold prices were reported to have hit a record high ahead of the U.S. Federal Reserve's interest rate decision.
- The market said it expects the Federal Open Market Committee (FOMC) to cut the policy rate by at least 0.25 percentage points.
- It reported that the interest rate futures market shows a 96% probability of a 0.25-percentage-point rate cut, which appears to have influenced gold prices.
International gold prices hit a record high ahead of the U.S. Federal Reserve (Fed)'s interest rate decision.
On the 15th (local time) at the New York Mercantile Exchange, the settlement price for September-delivery gold futures was 3682.2 dollars per ounce, up 32.8 dollars (0.9%) from the previous trading day.
Spot gold also surged intraday to 3695.39 dollars, marking a record high.
The rise in gold prices is interpreted as being underpinned by expectations of a rate cut by the Fed.
The market expects the Fed to lower the policy rate by at least 0.25 percentage points from the current 4.25~4.50% at the Federal Open Market Committee (FOMC) on the 17th.
According to the Chicago Mercantile Exchange (CME)'s FedWatch tool, the interest rate futures market shows a 96% probability of a 0.25-percentage-point cut at the FOMC meeting on the 17th and a 4% probability of a 0.50-percentage-point cut.
Uk Jin
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