Gold closes up $8.20 on hopes the Fed will cut interest rates in

Gold futures on the New York market closed higher on Monday (July 15), boosted by hopes that the US Federal Reserve ( Fed ) will cut interest rates at its September meeting.

Meanwhile, gold futures on the COMEX (Commodity Exchange) for August delivery rose $8.20, or 0.34%, to settle at $2,428.90 an ounce.

September silver futures fell 22.60 cents, or 0.73%, to settle at $30.936 an ounce.

October platinum futures fell $2.30, or 0.23%, to settle at $1,011.00 an ounce.

September palladium futures fell $21.10, or 2.17%, to settle at $951.20 an ounce.

The gold market received positive factors from investors' expectations that the US Federal Reserve (Fed) will cut interest rates up to 3 times by the end of this year, with the first rate cut expected at the September meeting.

Federal Reserve Chairman Jerome Powell said in a speech to the Economic Association in Washington, D.C., on Monday (July 15) that the Fed will not wait until inflation is at its 2% target before cutting interest rates. He also said he does not think the US economy is facing a sharp downturn after its rapid expansion.

“The Fed will not wait until inflation is at its 2% target before cutting rates,” Powell said. “The reason for that is that waiting until inflation is at 2% is too long, because the monetary tightening we are currently doing is still having the potential to bring inflation below 2%.”