Gold prices rise to a four-month high, as market expects the Federal Reserve to cut rates this month

According to Deep Tide TechFlow, gold prices rose to a four-month high on Monday, reaching $3,470 per ounce, a daily increase of about 0.4%. Market expectations for a Federal Reserve rate cut this month have boosted the appeal of gold.

Data shows that U.S. consumer spending grew steadily in July, with core inflation rebounding, but this may not prevent the Federal Reserve from cutting rates this month. U.S. PCE data rose 0.2% month-on-month and 2.6% year-on-year, in line with expectations.

According to CME FedWatch, traders expect an 87% chance that the Federal Reserve will cut interest rates by 25 basis points later this month.