Gold Price News: Gold Pulls Back from All-Time Highs

Gold prices pulled back slightly on Tuesday from their fresh all-time high on Monday, as the market took stock of the latest push into new territory.

Prices eased slightly to a low of $2,561 an ounce on Tuesday, compared with around $2,584 an ounce in late trades on Monday. Monday saw a fresh all-time high for gold at $2,590 an ounce in intra-day trading.

Tuesday’s pull-back was perhaps inevitable after the previous week’s steep gains, although bullish elements continue to keep the yellow metal supported.

The big-ticket item this week is the US Fed’s meeting on Wednesday which is widely expected to see the central bank slash interest rates for the first time since March 2020.

Data from interest rate traders imply a majority of over 60% believe the Fed will cut rates by 50 basis points at the meeting, with less than 40% expecting a smaller 25-basis point cut, according to the latest figures from the CME FedWatch tool: CME FedWatch – CME Group

Lower borrowing costs tend to weaken the US dollar and support precious metals prices. Whatever is announced on Wednesday, the market’s focus will naturally also shift to the potential for any further rate cuts in the remainder of the year.

In addition, geopolitical tensions once again came to the fore on Tuesday after a coordinated attack caused electronic pagers owned by Hezbollah members in Lebanon to explode simultaneously, killing several and injuring hundreds. The latest move may be seen as raising the risk of a wider conflict in the region – which would tend to support safe havens like precious metals.