Gold maintained momentum near an all-time high of around $3,750 on growing expectations for a US Federal Reserve (Fed) interest rate cut and continued demand for safe-haven assets amid geopolitical uncertainty.
At 9.20am, gold was at $3,753.11, up 0.18% since it opened in early Asian trading on Tuesday.
The Fed decided to cut rates by 25 basis points for September, its first in 2025.
The decision was supported by signs of a weak labor market and concerns about job risks, although inflation remained relatively high. Lower interest rates could reduce holders' opportunity costs and boost support for gold.
Fed Governor Stephen Miran was the lone policymaker to oppose a quarterly rate cut and opted for a 50 basis point cut, a more aggressive move that could expose risks to the economic outlook.
Rising geopolitical risks also boosted safe-haven flows, supporting the yellow metal.
Reuters reported on Tuesday that the Russian defense ministry said its troops had taken control of the Kalynivske settlement, in Ukraine.
For now, market participants will be closely watching a series of Fed speeches later this week, including a statement from Fed Chairman Jerome Powell on Tuesday.
The speech is likely to offer some important clues about the next steps in US monetary policy, with any hawkish tone from Fed officials likely to support the US dollar and weigh on gold.
