Dollar Weakens Before Fed Decision, Gold Nears Record High – Will It Break Another Record?

Mumbai: Gold prices are going up again and again. People were expecting prices to fall, but the opposite is happening. Gold is now near its all-time highest price. The reason? All eyes are on the US Federal Reserve’s next decision on interest rates.

Will the Fed Cut Rates?

The US central bank, Federal Reserve, is expected to cut interest rates in its upcoming meeting. Because of this expectation:

- Bond yields are falling.

- The US dollar is getting weaker.

This is making gold more attractive to investors, pushing prices higher.

Gold Demand Rising, Dollar Falling

As the dollar weakens, investors are buying more gold. This is pushing prices up.

Right now, gold has crossed USD 3,700 per ounce, which is very close to a new record.

Why Is the Dollar Weak?

The dollar has fallen to its lowest point in 2 months. There are a few reasons:

- Weak job data in the US.

- Trade risks due to tariffs introduced earlier by the Trump administration.

- Expectations of rate cuts to support the economy.

Even Trump Wants Lower Interest Rates

US President Donald Trump has also asked the Federal Reserve to cut rates. He even said Fed Chair Jerome Powell is acting too slowly.

Now, the world is watching to see what the Fed will decide. This decision won’t just affect America—it could also impact India and global markets.