Gold prices hovered near all-time highs on Wednesday as expectations for a Federal Reserve interest rate cut later in the day dented the dollar and U.S. bond yields, boosting demand for the precious metal.
Spot gold held its ground at $3,690.09 per ounce, as of 0115 GMT, after hitting a record high of $3,702.95 on Tuesday.
U.S. gold futures for December delivery edged 0.1% higher to $3,727.30.
The dollar languished near more than two-month low against its rivals, making gold more attractive for other currency holders. The benchmark U.S. 10-year Treasury yields were hovering near more than five-month low.
Data on Tuesday showed U.S. retail sales increased more than expected in August, but a weakening labor market and rising prices because of tariffs pose a downside risk to continued strength in spending.
The U.S. central bank is expected to deliver a quarter-percentage-point interest rate cut later in the day to support the labor market. Remarks from Fed Chair Jerome Powell will be closed watched to gauge the pace of further easing.
Lower rates reduce the opportunity cost of holding non-yielding bullion.
U.S. President Donald Trump in a social media post on Monday called for Powell to enact a “bigger” rate cut.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.32% to 979.95 metric tons on Tuesday, from 976.80 tons on Monday.
Elsewhere, spot silver eased 0.1% at $42.50 per ounce, platinum gained 0.4% to $1,395.75 and palladium rose 0.6% to $1,183.09.
India’s silver imports are expected to gather momentum in the coming months, supported by stronger investment and industrial demand that has already absorbed the surplus from last year’s elevated shipments, industry officials told Reuters.
