Gold Drives Back Toward Record as Investors Embrace Fed's Pivot
Gold rose toward a record after the Federal Reserve kicked off an easing cycle with a 50-basis-point cut and signaled more reductions.
The metal advanced above $2,575 an ounce after topping $2,600 for the first time on Wednesday in the immediate aftermath of the Fed decision, before ending that session lower. The gain on Thursday which also saw silver jump came as the US dollar fell, losing all of an early, intraday rise.
Gold has rallied by about a quarter this year, with gains supported by the anticipation of Fed easing as policymakers become more concerned about labor-market weakening even as inflation faded. Central-bank buying and haven demand due to conflicts in the Middle East and Ukraine have also helped.
While the Fed's first cut marked an aggressive start to a shift, Chair Jerome Powell cautioned that no one should see that as a "new pace." Still, lower borrowing costs benefit gold, which doesn't yield interest.
Spot gold traded 0.7% higher at $2,577.24 an ounce at 3:10 p.m. in Singapore after being down as much as 0.3%. The Bloomberg Dollar Spot Index fell 0.4%. Silver rallied above $31 an ounce, while palladium and platinum also climbed.
Source : Bloomberg
