Due to the market's expectation of a interest rate cut by the Federal Reserve and some traders increasing their bets on Trump's second term in the White House, the current gold price is only one step away from historical highs.

On Tuesday night, despite the "terrifying data" exceeding expectations, the gold price quickly recovered from the decline caused by this news and once reached a daily high of $2,447.94, only $3 lower than the historical record set at the end of May.

Traders expect the Federal Reserve to cut interest rates twice this year, each time by 25 basis points, which is usually beneficial for non-interest-bearing precious metals as inflation is cooling. The recent rise of gold ETF holdings in spot gold has also pushed up gold prices.

Gold prices have risen 18% this year, driven by expectations of a relaxed monetary policy by the Federal Reserve and large-scale purchases by central banks. Geopolitical tensions also support gold prices, which are traditionally considered safe-haven assets.

Ewa Manthey, ING Bank NV's chief commodity strategist, said on Tuesday:

"With more economic data supporting the argument for the Fed to turn to rate cuts, optimism is supporting gold prices. In the current global geopolitical and macroeconomic environment, gold prices are expected to maintain their upward momentum, while central bank demand is expected to continue to grow."

On Monday, Fed Chairman Powell said that recent data has given policymakers more confidence that inflation will fall towards the Fed's 2% target.

Gold traders have significantly increased their bets on three rate cuts this year after Goldman Sachs said that the conditions for a rate cut have matured and there are "good reasons" to expect the Fed to cut rates as early as July.

The latest surge in gold prices is not necessarily surprising. As early as June, consulting firm Metals Focus predicted that gold prices would continue to reach new highs this year. Earlier this month, Citigroup said the basic scenario for the gold price in 2025 is $2,700 to $3,000 per ounce.

Trump's election campaign gained momentum after the assassination attempt last weekend and the judge rejected the criminal charges against him. Giovanni Staunovo, a commodity analyst at UBS Group AG, said that Trump's election as president could have both positive and negative effects on gold. He said this could lead to "tax cuts, support for money moving to the stock market, and ultimately limits on faster rate cuts."

On the other hand, he said tax cuts would affect the US financial situation, possibly weaken the position of the US dollar, and encourage buyers to turn to safe-haven assets such as gold.