• Gold has pulled back down ahead of the Federal Reserve policy meeting announcement on Wednesday. 
• Better-than-expected US Retail Sales data released on Tuesday caused the backslide in the precious metal. 
• Bridgewater Associates CIO Ray Dalio considers a 25 basis points rate cut as more appropriate in the current context. 

Gold (XAU/USD) trades in the $2,570s on Wednesday, ahead of the main financial-market event of the week: the Federal Reserve (Fed) policy meeting announcement at 18:00 GMT.   

Gold surges as bets the Fed will double cut increase

Gold hit a record high of $2,589 at the start of the week after market bets that the Fed would make a double-dose 0.50% cut to interest rates at its meeting later today rose sharply. 

A bigger rate cut from the Fed would be positive for Gold because it lowers the opportunity cost of holding the yellow metal, which is a non-interest-paying asset. This makes it more attractive to investors.