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Gold holds listed below record high as financiers await clarity on Fed cuts

Gold rates were trading listed below record high levels on Wednesday after a rally sustained by Western fund inflows and U.S. ratecut optimism, as financiers braced for minutes of the Federal Reserve's most current meeting for clarity on the depth of cuts.

Area gold was up 0.1% at $2,517.38 per ounce, as of 0238 GMT, after striking an all-time high of $2,531.60 on Tuesday. U.S. gold futures rose 0.2% to $2,555.20.

Gold has acquired about $460 or 22% up until now this year, with geopolitical tensions and uncertainty developed by the upcoming U.S. Presidential elections and potential rate cuts set to aid power the rare-earth element to even loftier levels.

Gold's glittering rally is a reflection of markets preparing for deeper Fed cuts, said OCBC FX strategist Christopher Wong.

Traders have actually completely priced a rate cut at the Fed's September meeting, with a 68% possibility of a 25 basis points cut, according to CME FedWatch tool.

The dollar slipped to its most affordable this year compared to the euro, while benchmark 10-year Treasury yields also sank, making non-yielding bullion more appealing for holders of other currencies.

Traders now await minutes of the Fed's July policy meeting due later in the day, and Fed Chair Jerome Powell's speech on the U.S. financial outlook this Friday at Jackson Hole.

Considered that the markets have actually currently expected deep cuts to some level, the bar is high for Powell to out-dove markets. Some reality check might be enough and not dismissing a pullback on gold prices in the near term, Wong included.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, stated its holdings fell 0.20% on Tuesday from seven-month highs.

Area silver edged 0.4% higher to $29.52 per ounce, platinum acquired 0.5% to $953.35 and palladium added 0.4% at $929.27.

(source: Reuters)