Gold prices have risen beyond $2550 due to increasing rate cuts bets and heightened geopolitical tensions, indicating potential for further rise.

The gold price has recovered from $2500 after the critical US CPI report prompted investors to lower their expectations of a greater, 50-basis-point interest rate decrease by the Federal Reserve next week.

Gold prices are on the verge of reaching a new high following the first debate between Democratic Vice President Kamala Harris and Republican Presidential contender Donald Trump.

Gold prices are consolidating at record highs in a range of $60 from the last 15-20 days as there are mixed cues from the economic front. The range is from $2470 (~ Rs 71000) to $2530 (~Rs 72300).

Gold oscillates around $2500 (~Rs 72000) based on mixed economic indicators from the US. The mixed US employment data decreased the chances of a greater 50 basis point rate cut by the FED.

Gold prices reached fresh two-week highs above $2500 ahead of the NFP report release today. Yesterday’s US jobs data indicated a cooling labour market, leading to anticipation of a 50-bps interest rate cut by the Federal Reserve in the coming two weeks.

Gold has recently recovered some ground and seesaws around $2500 after the US Bureau of Labor Statistics disclosed that the number of job openings in July fell significantly compared to June’s downwardly revised statistics via the JOLTS report.

The gold price is sustaining its recent recovery from an eight-day low of $2473 (Rs 71000) as traders respond to disappointing US ISM Manufacturing PMI data, raising fears about a potential ‘hard landing’ for the economy.

Gold continues to remain around its recent record highs of around $2500, but its upward momentum is under threat as the US dollar seems oversold.

The U.S. economy continues to defy expectations, with GDP growing strongly in the second quarter. Despite this favourable economic news, gold prices remain unchanged, with the market consolidating at record levels.

The US Dollar Index’s modest resurgence has led to a short-term fall in gold prices, despite an overall rising trend. Increased buying activity in North America and Europe would boost worldwide demand, and silver is projected to climb with gold.

The gold price continues to soar above $2500 per troy ounce, aided by rising geopolitical concerns in the Middle East. Last week, US Federal Reserve Chair Jerome Powell’s address at the Jackson Hole symposium signalled the “time has come” to cut interest rates, which supports the precious metal.