• Gold price steadied at $2,660 after hitting a record high of $2,670.
• Traders assign a 60% chance for another 50 bps of Fed rate cuts in November.
• US Treasury yields and a stronger US Dollar limited Gold's upside despite bullish momentum.

Gold price remains steadily above $2,650 for the second straight session on Wednesdayas traders increased the odds for another big interest rate cut by the Federal Reserve (Fed) at the upcoming November meeting. That and high US Treasury yields kept the XAU/USD from rising further, and it mostly traded near $2,660, up 0.14%.

Market sentiment shifted slightly sour during the US session as Wall Street traded in the red. Hence, Bullion prices hit a record high of $2,670 but retreated as US Treasury yields rose four and a half basis points (bps) to 3.775%.

In the meantime, the US Dollar Index (DXY), which tracks the buck’s value against another six currencies, bounced off a 14-month low and edged up 0.54% to 100.88.

During the week, US economic data showed that business activity in the manufacturing sector cooled while services remained resilient. However, a deterioration in Consumer Confidence via the Conference Board (CB) suggests that conditions in the labor market could be worse than projected.

Last week, the Fed lowered borrowing costs by 50 bps to 4.75%-5.00%, and traders seemed confident about back-to-back cuts of the same size. According to the CME FedWatch Tool, the odds for a 50 bps Fed cut are 60%, while 25 bps stands at 40%.

Bullion prices had risen 29% in 2024, sponsored by Gold’s physical demand and major central banks beginning their easing cycles. This and geopolitical tensions could keep traders setting their sights at $2,700.