(Bloomberg) -- Gold held a small gain after traders increased bets the Federal Reserve will cut interest rates next month, following pressure from US Treasury Secretary Scott Bessent.

Bullion rose as much as 0.6% on Thursday before paring gains to trade near $3,365 an ounce. Prices saw a modest increase in the previous session, supported by a fall in Treasury yields after Bessent suggested the Fed’s benchmark rate ought to be at least 1.5 percentage points lower than it is now. Lower borrowing costs and declining yields tend to support gold, as it pays no interest.

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The increased bets on monetary easing mark a shift from last month, when markets at one point saw less than a 50% chance of a September rate cut. The consensus is now for a quarter-point move next month, with some betting on a larger reduction.

Gold has climbed 28% this year, with the bulk of those gains occurring in the first four months. It has been supported by heightened geopolitical and trade tensions that have spurred haven demand, while central bank purchases have also underpinned its strength.

Spot gold was up 0.2% to $3,363.35 an ounce at 8:14 a.m. in London, after rising 0.2% in the previous session. The Bloomberg Dollar Spot Index was steady. Silver and platinum were little changed, while palladium edged higher.

The market is still seeking official clarification over whether US imports of gold bars would be subject to tariffs, after days of confusion that prompted a spike in the premium for gold futures in New York over the spot price in London. President Donald Trump said on Monday that there would not be a levy — causing the two markets to converge — but he didn’t elaborate.

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