Gold bullion hits record high on rate cut hopes

WASHINGTON (dpa-AFX) – Gold edged higher on Tuesday to a record high as markets looked ahead to the minutes of the Fed’s July policy meeting on Wednesday and Chairman Jerome Powell’s speech on the U.S. economic outlook at the Jackson Hole symposium on Friday. The speech was intended to signal how far the central bank will cut interest rates this year.

Spot gold rose 0.7 percent to $2,521.85 an ounce, while U.S. gold futures rose 0.8 percent to $2,561.25.

The dollar hovered near a seven-month low on bets the Federal Reserve would cut interest rates next month after inflation finally fell below 3 percent.

Minneapolis Federal Reserve Chairman Neel Kashkari said in an interview with the Wall Street Journal that he is open to cutting rates in September because of the increasing likelihood of a weakening labor market.

Sweden’s central bank, the Riksbank, today cut its policy rate for the second time this year and signaled that more rate cuts could follow if inflation prospects remain the same.

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