US interest rate-cut expectations have yellow metal shining bright

Mild recession, low inflationary pressures in the US and a stronger rupee would act as headwinds

Gold closed at Rs 56,655 per 10 grams on Monday, an all-time high in the domestic market. In the international market, the yellow metal closed at $1,918 per ounce, up 16.6 per cent over the past three months.

Rate cut expectations driving gold up

Gold faced a couple of headwinds last year. The US Federal Reserve (Fed) was hiking interest rates and tightening liquidity aggressively. The dollar was strengthening. Now, the market anticipates that the end of the rate hike cycle is near. “The Fed funds futures implied rate, a market-driven rate, is indicating that the Fed will reach peak