Gold Rises Above $3,700 for First Time on Fed Rate Cut Optimism

Core Viewpoint - Gold prices have reached a new record high as investors anticipate a Federal Reserve rate cut and potential further monetary easing in the coming months [1] Group 1: Gold Price Movement - Gold surpassed its previous all-time high of approximately $3,685 per ounce, supported by a decline in the US dollar to its lowest level in over seven weeks [2] - As of 9:01 a.m. Singapore time, gold rose 0.2% to $3,686.39 per ounce, following a 1% gain on the previous day [5] Group 2: Economic Factors Influencing Gold - Weak labor data and the absence of significant inflation surprises have increased expectations for additional rate cuts this year, which is favorable for gold as it does not yield interest [2] - The Federal Reserve is expected to release its quarterly economic and rate forecasts, which could further influence market sentiment [2] Group 3: Political Influence - US President Donald Trump's pressure on the Federal Reserve, including attempts to remove Governor Lisa Cook, has strengthened expectations for a more dovish monetary policy [3] - Economic advisor Stephen Miran is anticipated to join the Federal Reserve, potentially impacting future monetary policy decisions [3] Group 4: Market Trends and Predictions - Gold has surged over 40% this year, outperforming major assets like the S&P 500 index, and has recently exceeded its inflation-adjusted peak from 1980 [4] - Goldman Sachs has projected that gold prices could approach $5,000 per ounce if just 1% of privately-held Treasuries are allocated to gold [4]