Gold Prices Reach Record High Amid Anticipated Fed Rate Cut

According to BlockBeats, gold prices surged to a historic high on Tuesday, reaching $3,690 per ounce, supported by a weakening U.S. dollar. The market widely expects the Federal Reserve to announce a rate cut during its policy meeting this week. Capital.com analyst Kyle Rodda noted that market sentiment is highly optimistic, with bets on a rate cut ahead of the Federal Open Market Committee decision. Rodda emphasized that the short- to medium-term outlook for gold remains strong. He cautioned that if the Federal Reserve does not support the dovish expectations in its guidance and forecasts, gold prices could experience a sharp decline. Conversely, if the Fed aligns with market pricing, it could act as a catalyst for gold prices to surpass $3,700.