Gold Steadies Before Powell Speech, US Data Offer Fed Rate Clues
Gold steadied near a record as investors pondered the Federal Reserve's rate-cut path, ahead of a speech by Chair Jerome Powell and the release of inflation-linked price data.
Bullion traded near $2,660 an ounce, after it touched a record high on Wednesday before paring gains. Investors are seeking fresh macro catalysts amid lingering growth concerns for the US economy that have seen traders boost bets on the central bank implementing more than 75 basis points of easing before 2025. Lower rates tend to benefit bullion, which doesn't pay interest.
Traders will also be analyzing a pre-recorded address by Powell that's due to air later Thursday at the 10th annual US Treasury Market Conference. Several policymakers have expressed their openness to making additional - potentially large - interest-rate cuts. US data - including the personal consumption expenditures gauge and jobless claims - due this week could give additional indications on the Fed's likely easing path.
Gold has gained nearly 30% this year, with the rally gaining momentum after the Fed's half-point cut last week. The precious metal also been supported by strong central bank purchases and heightened geopolitical tensions driving haven demand. A too-close-to-call US presidential election that could be massively consequential for financial markets is now less than six weeks away.
Spot gold was little changed at $2,657.44 an ounce as of 7:57 a.m. in Singapore, after reaching an all-time high of $2,670.57 on Wednesday. The Bloomberg Dollar Spot Index was steady following an 0.7% gain in the previous session. Silver edged up toward a four-month high. Platinum and palladium were flat.
Source: Bloomberg
