Gold investors were all smiles today after seeing a surge in the price of the yellow metal which reached a new all-time record high (ATH) of $2,146.79 per ounce.
The surge at the market's opening this morning was driven by growing expectations that the Federal Reserve (Fed) will keep interest rates unchanged at its meeting this month and may begin lowering them next year.
Investors also ignored Fed Chairman Jerome Powell's statement dismissing the possibility of a rate cut saying it was too early or 'premature'.
By doubling down on expectations, investors now see a 60% chance that the Fed will cut interest rates in March 2024 and a 100% chance of a cut in May.
Earlier, the US (US) ISM manufacturing survey report showed a 13th consecutive contraction in manufacturing activity while personal consumption expenditure (PCE) data also showed a slowdown in price growth.
At the time of writing, the yellow metal was trading lower again at around $2,085 per ounce, retreating from the $2,146.79 per ounce ATH reached at the start of the Asian session.
