Gold Hits Record as Investors Await Powell Speech for Rate Clues
Gold reached a new record as investors pondered the Federal Reserve's rate-cutting path, ahead of a speech by Chair Jerome Powell and the release of inflation-linked price data.
Bullion hit an all-time high of $2,675.69 an ounce, exceeding the record set on Wednesday. Investors are seeking fresh macro catalysts amid lingering growth concerns for the US 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 almost 30% this year, with the rally gaining momentum after the Fed's half-point cut last week. The precious metal has 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 up 0.7% at $2,674.96 an ounce at 11:55 a.m. in London. The Bloomberg Dollar Spot Index fell 0.3%. Silver edged up toward a four-month high, while platinum and palladium also advanced.
Source : Bloomberg
