Gold Steady Near Record High as Fed Officials Lift Easing Hopes
Gold steadied near a record high after several Federal Reserve officials appeared to leave the door open to additional large rate cuts.
Bullion traded near $2,630 an ounce, after closing up 0.3% on Monday and hitting an all-time high following the remarks. Chicago Fed President Austan Goolsbee and some of his colleagues at the central bank said that current rates still weigh heavily on the US economy, although none of them said they already favored repeating last week's half-point cut.
The market is pricing in three-quarters of a point of further easing by year-end, suggesting another 50-basis-point reduction is in store.
The precious metal has surged by more than a quarter this year in the runup to the Fed pivot, with strong central bank purchases and haven demand also aiding the rally. A major Israeli strike on southern Lebanon is ratcheting up dangers in the Middle East, which may support gold, while the closely fought US presidential election is just six weeks away.
Spot gold declined 0.1% to $2,625.01 an ounce as of 8:45 a.m. in Singapore, after touching an all-time high of 2,634.90 on Monday. The Bloomberg Dollar Spot Index rose 0.1%. Silver and platinum were little changed, while palladium edged lower.
Investors are also waiting for US data - including the personal consumption expenditures gauge and jobless claims - due later in the week, which could influence Fed thinking on its easing path.
Source : Bloomberg
