Gold Breaks to New High Above 2490 as Investors Expect Fed Rate Cut

Gold Prices Surge More Than 4.5%

Gold prices surged more than 4.5% on Monday, breaking to a new high above $2490 per ounce as investors continued to expect the Federal Reserve to cut interest rates in September.

Reasons for Gold's Rally

• Expectations of a Fed rate cut
• Rising tensions between the US and Iran
• Uncertainty over the US-China trade war

Spot gold reached a high of $2493.24 per ounce, its highest level since September 2011.

Gold's Outlook

Analysts believe that gold prices could continue to rise in the short term as investors seek safe-haven assets amid global uncertainty.

However, some analysts caution that the rally could be short-lived, as the Fed is unlikely to cut interest rates as aggressively as the market expects.