The yellow metal is approaching record levels, supported by political uncertainty and expectations of monetary easing

Gold prices are at levels of 3390 dollars

Gold prices stabilized on Thursday near record levels, with the precious metal trading around 3390 dollars per ounce.

This stability was supported by the growing political uncertainty in the United States, along with market expectations of the Federal Reserve's direction towards cutting interest rates next September.

The US political arena witnessed additional tension after President Donald Trump's move to dismiss Lisa Cook, the governor of the Federal Reserve Board, which prompted her lawyer to pledge to challenge the decision in court, sparking an unprecedented legal confrontation between the US administration and the central bank.

Strong expectations of interest rate cuts

On the other hand, the markets have raised their bets on the monetary easing decision, as the forecast suggests an 89% probability of a rate cut of 25 basis points, compared to 82% a week ago.

The head of the Federal Reserve Bank of New York, John Williams, also confirmed that a cut is under discussion, in unison with Jerome Powell's statements in Jackson Hole.

Asian demand boosts gold gains led by China

In Asia, demand for gold remained strong, with data showing that China's net imports through Hong Kong increased by 126.8% in July compared to June, reflecting an increase of more than doubled on a monthly basis.

This combination of US political tensions, growing expectations of monetary policy easing, as well as strong demand from China, gives gold additional impetus to maintain its trading at historically high levels.