Gold Holds Three-Day Advance on Haven Demand and Fed Outlook
Gold held a three-day advance, with gains supported by haven demand and prospects for further cuts in US interest rates.
Bullion traded near $2,660 an ounce after rising by more than 3% over the previous three sessions. Traders are focusing renewed attention on Russia’s invasion of Ukraine, with Kyiv using British cruise missiles against Russian targets for the first time, expanding the use of Western-provided long-range weapons. Investors typically seek safety in the precious metal at times of uncertainty.
In the US, meanwhile, Federal Reserve Bank of Boston President Susan Collins said that more interest-rate cuts were needed, but policymakers should proceed carefully to avoid moving too quickly or too slowly. Lower rates typically benefit gold as it doesn’t pay interest.
Bullion is clawing back losses seen in the immediate aftermath of Donald Trump’s victory in the US election, which sparked a rally in the US dollar. With gold still almost 29% higher year-to-date, there are widespread expectations for fresh records in 2025, with Goldman Sachs Group Inc. and UBS Group AG both issuing bullish outlooks in recent days.
Spot gold was 0.3% higher at $2,659.14 an ounce at 9:00 a.m. in Singapore. The Bloomberg Dollar Spot Index dipped 0.1% after gaining 0.4% on Wednesday. Silver rose to trade above $31 an ounce, while platinum and palladium were little changed.
(Source: Bloomberg)
