FX.co ★ Gold Edges Higher on Fed Rate-Cut Bets

Gold prices inched up to approximately $3,770 per ounce on Monday, remaining just below the record high reached last week. This increase was fueled by expectations of further interest rate cuts by the US Federal Reserve and a weakening dollar. Recent data released on Friday indicated that the US Personal Consumption Expenditures (PCE) inflation figures were in line with projections, reinforcing speculation that the Fed might continue to ease monetary policy later this year. Market participants are currently estimating a 90% likelihood of an interest rate reduction in October and a roughly 65% chance of an additional cut by December. Concurrently, investors are keeping a close watch on the potential risk of a US government shutdown, which could delay the release of crucial employment data and complicate the Fed's policy-making process. In terms of trade developments, last week President Donald Trump announced a fresh round of tariffs on imported goods, including drugs, trucks, and furniture, set to be implemented on October 1. This move introduces further uncertainty into the economic landscape.