Gold prices climbed on Tuesday, marking the sixth record high this month, as the dollar weakened against major currencies. The rise followed the Federal Reserve's decision to begin a new easing cycle, surprising markets with a 0.5% interest rate cut to 5% last week.
Investors now anticipate another similar rate cut by the Fed before the year ends. Lower interest rates increase market liquidity and lower borrowing costs for companies, thereby encouraging investments.
Meanwhile, the dollar index dropped 0.4%, reaching 100.4 by 19:05 GMT, with a session high of 101.05 and a low of 100.4. Spot gold prices rose 1.1%, hitting $2,682.2 per ounce by 19:06 GMT.