Home Investing News Gold scales new record peaks as rate cut bets burnish appeal

Gold scales new record peaks as rate cut bets burnish appeal


Gold scales new record peaks as rate cut bets burnish appeal By Reuters

Breaking News



Published Mar 07, 2024 12:13AM ET
Updated Mar 07, 2024 02:43PM ET

© Reuters. FILE PHOTO: Ingots of 99.99 percent pure gold are processed at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File photo

By Anjana Anil

(Reuters) – Gold raced to an all-time high on Thursday, extending its record run this week as increasing bets for U.S. monetary easing added to sustained tailwinds for bullion from central bank buying and safe-haven demand.

Spot gold was up 0.4% at $2,156.93 per ounce as of 02:00 p.m. ET (1900 GMT), hitting record high of $2,164.09 during the Asian trading hours.

U.S. gold futures settled 0.2% higher at $2,165.2.

Powell said the Fed is “not far” from getting enough confidence that inflation is heading to the Fed’s 2% goal to be able to start interest-rate cuts.

Traders are now pricing in a 74% chance of a June rate cut, versus around 63% on Feb. 29, the CME’s Fedwatch Tool showed.

A low-interest rate environment translates into reduced opportunity cost of holding non-yielding gold and weighs on the dollar, making bullion cheaper for overseas buyers. [USD/] [US/]

Rate cut bets are driving gold prices and everyone is expecting they will come, said World Gold Council market strategist Joseph Cavatoni.

Central banks’ gold purchases also continue to be very strong, Cavatoni added.

Further market direction could come from Friday’s U.S. non-farm payrolls report.

In physical markets, the price surge was expected to dampen consumption during the Indian wedding season, but top buyer China could see robust safe-haven demand. [GOL/AS]

Geopolitical risks are also the major driver for bullion, said James Steel, precious metals analyst at HSBC.

“We only have a narrow group of assets that investors can really call safe haven, and gold is number one amongst them.”

Bullion has climbed over $300 since the start of the Israel-Hamas war.

However, the latest rally in gold has come alongside a rally in riskier assets. [.N]

Silver added 0.6% to $24.31, while platinum climbed 1.3% to $919.00 per ounce.

Palladium slipped 0.5% to $1,037.00 after surging as much as 12% on Wednesday.

Gold scales new record peaks as rate cut bets burnish appeal

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News