04.09.202513:05:34UTC+00Gold Holds Close to Record High

Gold remained steady around $3,550 per ounce on Thursday, maintaining proximity to its recent peak of $3,580, driven by the anticipation of reduced interest rates by the Federal Reserve and an intensified demand for safe-haven assets. In August, the US economy saw a smaller-than-anticipated rise in private sector employment, with job cuts exceeding forecasts and initial jobless claims unexpectedly reaching a two-month high. This data has strengthened expectations that the Federal Reserve will commence another rate-cutting cycle this month. A larger segment of rate traders is now anticipating three rate reductions for the year, enhancing gold's appeal by diminishing the opportunity cost of yield-bearing assets. Concurrently, gold's value benefited from concerns over potential threats to the Federal Reserve's autonomy, potentially elevating inflation expectations and prompting investors to seek safety. Stephen Miran, known for his skepticism regarding Fed independence, was set to join the Federal Open Market Committee (FOMC), while Chairmanship candidates for the next year frequently expressed dovish sentiments, aligning with those of President Trump.