Fed Rate Cut Bets Drive Gold to All-Time High
Gold prices extended gains to hit a record high on Friday on expectations of interest rate cuts by the Federal Reserve, while palladium was set to log its best week in nine months.
Spot gold firmed 0.4% to $2,570.07 per ounce by 0857 GMT, after hitting a record high of $2,570.91 earlier. U.S. gold futures rose 0.7% to $2,598.10.
The dollar slipped 0.4%, making bullion more attractive to other currency holders.
Traders raised bets a 50-basis point Fed rate cut next week to 41% from about 28% after the Financial Times and Wall Street Journal said that the larger reduction was still an option.
Meanwhile, the European Central Bank cut interest rates again on Thursday.
Investors often turn to bullion in a low-interest rate environment as insurance in times of geopolitical uncertainty.
Retail buyers in key Asian hubs shied away from gold purchases amid soaring prices, forcing dealers to offer deep discounts.
Spot silver added 0.7% to $30.13. Palladium fell 0.2% to $1,044.14 but gained 14% this week. Platinum gained 1.1% to $988.35.
Source : Reuters
