Gold prices rose by another 0.3% after jumping by 0.51% yesterday. The precious metal is supported by expectations of easing of the Fed's monetary policy, as well as the weakening of the US currency.
Since the beginning of this week, the price of gold has increased by 1.03% and is preparing to record a third weekly increase in a row.
Experts said that the bullish outlook for gold remains unchanged amid expectations of monetary policy easing, but a decline in the dollar and U.S. Treasury yields, along with stronger demand for safe-haven assets, may be needed for prices to reach a new record high.
The latest US data has dispelled fears of a recession, but market participants still expect the Fed to reconsider its policy next month. According to the CME FedWatch Tool, markets see a 29.5% probability of a 0.5% rate cut in September (down from 36% yesterday), and a 70.5% probability of 0.25% rate cut (up from 64.0% yesterday). A low interest rate environment tends to boost non-yielding bullion's appeal.
The next catalyst for gold may be the minutes of the July Fed meeting, which will be presented on Wednesday, August 21. Investors' attention will also be focused on comments by Fed Chair Jerome Powell at the central bank's Jackson Hole Economic Policy Symposium on Aug. 22-24.