Gold prices jump 2% on growing Fed rate-cut bets

December gold futures surge 2.2%, or $76.1, to settle at $3,592.2 an ounce

Gold extended gains at Tuesday’s close as investors flocked to the safe-haven metal amid rising expectations of a US Federal Reserve interest rate cut.

December gold futures surged 2.2%, or $76.1, to settle at $3,592.2 an ounce.

Suki Cooper, precious metals analyst at Standard Chartered, told Reuters she expects gold to keep hitting record highs, supported by strong demand as markets brace for a potential Fed rate cut this month.

Traders are now pricing in a 92% chance of a 25-basis-point cut at the Fed’s upcoming meeting, up from 87.8% a week ago, according to the CME FedWatch tool.

Markets are also awaiting Friday’s US nonfarm payrolls report for signals on the resilience of the labor market in the world’s largest economy.