Gold price rally more than climbed to record highs, the global focus on the Federal Reserve is about to open rate cuts

Spot gold continued to move higher, setting a new all-time high above $2,550, after US inflation data came in higher than expected again and initial jobless claims rose, confirming bets that the Federal Reserve will cut interest rates next week. Ole Hansen, head of commodities strategy at Saxo Bank, said, “A number of factors such as the ECB's rate cut, a small rise in initial jobless claims and the PPI were enough to push gold prices to a new record high.” Swap traders consolidated their bets on a 25 basis point rate cut from the Federal Reserve at next week's interest rate meeting after the release of a pickup in August's CPI on Wednesday.Hansen added that the start of a rate-cutting cycle could add support for the gold market, regardless of the magnitude of the cut. Gold prices have risen by more than a fifth so far this year, and growing expectations that the Fed will soon start a rate-cutting cycle have supported the recent strength in gold prices. Strong buying by central banks and strong demand in the over-the-counter market have also pushed gold higher.