Gold skyrockets as stars align for Fed rate cuts
Gold prices powered higher on Friday, beating record levels, as a boost in bullish momentum fuelled by optimism that the U.S. Federal Reserve is on the brink of trimming interest rates was catalysed by fund inflows and a drop in the dollar.
Spot gold was trading at record levels, up 0.9% at $2,582.05 per ounce by 11:58 a.m ET (1558 GMT). U.S. gold futures rallied 1.2% to $2,610.30.
Gold market bulls are locking in bullion prices surging to fresh records, with a milestone of $3,000 per ounce coming into focus, fired up by monetary easing by major central banks and a tight U.S. presidential election race.
Markets fully price a rate cut next week, with a 57% chance of 25-basis-point U.S. rate cut and a 43% chance of a 50-bps cut, the CME FedWatch tool showed. This would be Fed's first rate cut since 2020.
Palladium rose 1.8% to $1,064.71 and has surged about 17% so far this week.
Spot silver rose 3.2% to $30.86 and platinum added 2.6% to $1,002.66.
Source: Reuters
