In anticipation of a rate cut by the Fed this week and demand for gold from central banks, Goldman Sachs reiterated its optimistic outlook on gold prices. According to FedWatch, the market is currently expecting a 38% chance of the Fed cutting rates by a quarter point this week, and a 62% chance of a half-point cut.Galvanized by a weaker US dollar and significant rate cut by the Fed, spot gold surged to a historic high of US$2,589.6 an ounce overnight (16th) and remained largely flat this morning (17th), It last printed at US$2,583.7.Related NewsPBOC Mounts RMB571.9B 7-day Reverse Repo TdyGoldman Sachs stated that expectations for a quarter-point rate cut by the Fed this week might lead to some tactical downside in gold prices, but reiterated its upbeat outlook on gold, predicting prices to rise to US$2,700 by early next year.