Gold prices experienced a notable uptick on Thursday, driven by a weakening dollar and the U.S. Federal Reserve’s decision to cut interest rates by 25 basis points. The Fed’s move, coupled with its indication of a gradual easing path for the remainder of the year, has significantly bolstered the appeal of the precious metal. Spot gold rose by 0.2% to $3,668.34 per ounce, following a record high of $3,707.40 on Wednesday. U.S. gold futures for December delivery, however, saw a slight decline of 0.4% to $3,703. The dollar, which had recently gained strength, retreated to near a two-month low, making gold more affordable for holders of other currencies. Concurrently, benchmark 10-year Treasury yields also decreased. Market analysts attribute the rise in gold prices to the dollar’s resumed weakness and the Fed’s dovish stance, which suggests two additional rate cuts this year. Fed Chair Jerome Powell described the rate cut as a ‘risk-management measure’ in response to a softening labor market, emphasizing a ‘meeting-by-meeting’ approach to future rate decisions. Gold, a non-yielding asset, is traditionally seen as a safe haven during periods of geopolitical and economic uncertainty, and it tends to thrive in low-interest-rate environments. Analysts, including Ross Norman, an independent market expert, believe that gold’s bull run remains robust, with record highs likely to persist. Traders are currently anticipating a 90% chance of another 25-basis point cut at the Fed’s October meeting, according to the CME Group’s FedWatch tool. ANZ Bank also predicts that gold will outperform early in the easing cycle, citing increased demand for haven assets amid a challenging geopolitical landscape. Meanwhile, other precious metals showed mixed performance, with spot silver rising 0.4% to $41.84 per ounce, platinum gaining 1.5% to $1,383.60, and palladium declining 0.7% to $1,146.55 per ounce.