Global gold prices rose during these moments of trading, today, Wednesday, amid rising inflows of Western investment funds and optimism about cutting interest rates in the United States, as investors prepare for the minutes of the latest Federal Reserve meeting to learn more about the timing and size of the cuts.

Gold has gained nearly $470, or 22%, so far this year, as geopolitical tensions, uncertainty over the upcoming U.S. presidential election and a potential interest rate cut have helped push the precious metal higher.

“The rise in gold is a reflection of the markets’ anticipation of deeper cuts by the Fed,” said Christopher Wong, OCBC FX strategist.

Traders have fully priced in a rate cut at the Fed’s September meeting, with a 68% chance of a 25 basis point cut, according to the US Rate Tracker tool available on Investing Saudi Arabia.

The dollar fell to its lowest level this year, while benchmark 10-year Treasury yields also fell, making non-yielding bullion more attractive to investors.

Traders are now awaiting the minutes of the Federal Reserve's July monetary policy meeting due later today, and Fed Chairman Jerome Powell's speech on the US economic outlook on Friday in Jackson Hole.

“While prices appear to be heading lower, bears should be cautious, as I believe there is strong support around previous levels… and buyers waiting for prices to fall are likely to return to the market,” said Matt Simpson, senior analyst at City Index.

Geopolitical uncertainty, rising speculation and large global ETF inflows are fueling the bullish trend in gold, Joseph Cavatoni, an analyst at the World Gold Council, said in a report.

Gold at settlement yesterday

Gold prices extended gains on Tuesday, supported by a weaker dollar and growing investor confidence in the possibility of the Federal Reserve cutting interest rates in September.

At settlement, gold futures for December delivery rose 0.35%, or $9.3, to $2,550.6 an ounce, the sixth record level since the beginning of August.

Gold and dollar now

Spot gold rose 0.1% to $2,517 an ounce, after hitting an all-time high of $2,531.60 on Tuesday.

Gold futures rose 0.2% to $2,554.

On the other hand, the dollar index rose by 0.08% to 101.36 points.

Other minerals

Spot silver rose 0.3% to $29.52 an ounce, platinum rose 0.6% to $951.55 and palladium fell 0.1% to $924.60.