Gold snaps 5th record close since August-start

Gold bars

Gold prices turned higher at settlement today, Aug. 19, supported by the growing prospect of a Federal Reserve interest rate cut, reinforcing its uptrend that started over the past weeks.

Bullion for December delivery finished 0.15%, or $3.50, higher at $2,541.30 an ounce, marking the fifth record close this month.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.6% to 101.87 points at 09:45 pm Makkah time, the lowest since Jan. 2 when it reached 101.34 points.

In a research note, Citigroup analysts expected gold prices to climb to $3,000 per ounce by mid-2025, with the average price reaching $2,550 by the end of that year, Reuters reported.

According to the CME FedWatch Tool, investors are pricing in a 77.5% chance that the Federal Reserve will lower interest rates by 25 basis points (bps) at its forthcoming September meeting, compared to a 22.5% possibility of a 50-bp rate cut.