Gold 
“Gold rose to fresh all-time high as traders digested data showing a moderation in US business activity while awaiting a slew of key economic readings that may offer clues on the scope of further easing by the Federal Reserve.
US business activity expanded at a slightly slower pace in early September, while expectations deteriorated and a gauge of prices received climbed to a six-month high.
Bullion rose as much as 0.5% to a record $2,634.90 an ounce, beating the previous all-time high posted on Friday. Gold has advanced since the Fed lowered its benchmark interest rate by half a percentage point last week, building on what was already a record-setting year for the precious metal.
Federal Reserve Bank of Minneapolis President Neel Kashkari said he expects to lower interest rates by smaller, quarter-point moves at each of the central bank’s two remaining meetings this year.
“After 50 basis points, we’re still in a net tight position so I was comfortable taking a larger first step,” Kashkari said on CNBC Monday. “As we go forward, I expect, on balance, we will probably take smaller steps unless the data changes materially.”
Federal Reserve Bank of Chicago President Austan Goolsbee, meanwhile, said interest rates need to be lowered “significantly” to protect the US labor market and support the US economy.
After scrutinizing the comments from Monday’s Fed speakers, traders will turn their attention to US personal consumption data and jobless claims later in the week. Those could inform the central bank’s thinking on future rate cuts, which are often seen as positive for non-interest bearing gold.
“The market looks increasingly in need of consolidation, but at this point, a deep one is needed to rattle hedge funds holding the largest bet on higher prices since 2020,” according to a report from Saxo Bank A/S.
Bullion’s 27% rally this year has also been supported by robust purchasing by central banks and haven demand amid ongoing conflicts in the Middle East and Ukraine.
For Michael Cuggino, president at Permanent Portfolio Family of Funds, these bullish factors will help gold continue to trend higher over the long term despite some choppiness in prices in the near term. The firm’s Permanent Portfolio fund is currently above a target weighting of 20% and the company is “not changing our allocation at this time.”
Spot gold was up 0.3% at $2,630.22 an ounce by 10:56 a.m. in New York. The Bloomberg Dollar Spot Index was little changed, while the US 10-year Treasury yield edged higher. Palladium, platinum and silver all fell.”
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