Global Gold Prices Hit Six-Year High

Global gold prices on the Comex futures exchange hit their highest level in six years. According to Bloomberg data, global gold prices strengthened by 0.25% to US$1,425 per ounce in Tuesday's (July 30th) trading. This price increase was driven by market participants' expectations of a reduction in the US Federal Reserve's benchmark interest rate.

The Fed's Open Market Committee (FOMC) is predicted to cut its benchmark interest rate by at least 25 basis points (bps) at this week's meeting. One reason for this is the slowdown in the US economy during the second quarter of 2019. US economic growth reached only 2.1% in Q2 2019, below market expectations of 3.1%.

(See Databoks: [Global Gold Prices Hit New Record](https://databoks.katadata.co.id/datapublish/2019/06/21/harga-emas-dunia-tembus-rekor-baru))