Gold Futures Slip But Remain Close to Record Levels on Fed Policy Easing
Gold futures slip 0.2% to $2,640 a troy ounce, returning some gains from Friday's rally but hovering near all-time highs.
The precious metal set a new record of $2,651 per ounce on Friday in the afterglow of the U.S. Federal Reserve's jumbo interest rate cut, which should boost investor demand for precious metals and spur real consumption, Citi analysts say in a note. The U.S. bank reiterates its bullish stance on gold, with baseline average price projections of $2,800-$3,000 per ounce in 2025. A sharp rebound in gold bullion ETF inflows and healthy central bank demand--excluding China--should drive prices higher sequentially over the medium-term, Citi says. That said, a steep third quarter decline in Chinese retail gold imports is likely to be a cap on investor enthusiasm and a bearish tailwind to monitor, analysts add.
Source : Dow Jones Newswires
