XAU/USD: Gold Prices Stable Near Record as Bullion Bulls Gear Up for Fed’s Rate Cut

Gold was trading flat to slightly lower early Monday with prices hovering near $3,645 per ounce. It’s a big week and some consolidation can be expected as traders brace for, perhaps, the biggest Fed event this year.

 

The general expectation is a fully priced-in 25-basis-point cut to 4.25%. Should it occur, the lower borrowing costs could ease pressure on the economy and support gold’s continued upward momentum.

Gold often performs better when Treasury yields decline, which typically happens as interest rates move lower.