Gold Rises to Record High Before US Data That May Give Fed Clues
Gold touched a record high ahead of US data that's expected to give clues on whether the Federal Reserve's 50-basis-point rate reduction last week will be the first in a series of aggressive cuts.
Bullion rose as much as 0.2% to hit $2,625.89 an ounce, beating the previous all-time high posted Friday. Traders are weighing the outlook for rates ahead of a batch of crucial economic data — including the US personal consumption expenditures gauge and jobless claims — due later in the week.
Fed Governor Christopher Waller said on Friday he'd likely back quarter-point cuts at each of the next two central bank policy meetings in November and December, should the economy evolve as he expects. Still, he said another half-percentage-point cut could eventuate if the job market weakens.
Read More: Gold Investors See Gains in Rate-Cut Era From ETFs, Haven Buying
Gold traders were also monitoring escalating tensions in the Middle East, on concerns fighting between Hezbollah and Israel could broaden into a wider regional conflict. That would likely bolster the metal's haven status.
Spot gold was up 0.1% to $2,624.44 an ounce as of 10:44 a.m. in Singapore, following a 1.7% gain last week. The Bloomberg Dollar Spot Index was stable. Silver edged lower, while palladium and platinum declined.
Source: Bloomberg
