Gold Trades Near Record After Powell Affirms Rate Cut Next Month
- Fed chief says ‘time has come’ to pivot to monetary easing
- Bullion slightly higher Monday after jumping 1.1% on Friday
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Gold inched toward a fresh record after Federal Reserve Chair Jerome Powell affirmed expectations the central bank will start cutting interest rates next month.
Bullion traded above $2,500 an ounce, building on a 1.1% gain on Friday, when Powell said the “time has come” to pivot to monetary easing and made clear his intention to prevent further cooling in the US labor market. Lower borrowing costs typically increase the attractiveness of gold, which doesn’t pay interest, relative to Treasuries.