Gold Steady After Record, Sparks Profit-Taking
Gold traded in a narrow range on Wednesday after falling 1.3% in the previous session, as traders booked profits from the metal’s latest record.
Bullion was trading near $2,914 an ounce, about $40 below a fresh all-time high hit on Monday. It has been supported in recent days by weak U.S. data that raised hopes for a Federal Reserve interest rate cut as soon as July, while President Donald Trump’s escalating tariff threats have boosted demand for safe-haven assets. Prices have also been supported by renewed interest in bullion-backed exchange-traded funds.
Net inflows last week were the largest since 2022, according to data compiled by Bloomberg. ETF buyers could “drive gold’s next leg up and could more than offset weak technical trends and a weak physical market,” Standard Chartered Plc analyst Suki Cooper said in a note.
U.S. consumer confidence fell this month by the most since August 2021, data showed on Tuesday. The figures follow recent disappointments in retail, services and housing — which have prompted traders to increase bets on interest rate cuts this year. Lower borrowing costs tend to benefit gold because it doesn’t pay any interest.
Traders are also watching for fresh trade threats from Trump after the president signed an executive action on Tuesday directing the Commerce Department to examine possible copper tariffs.
Looking ahead, investors will analyze Friday’s core personal consumption expenditures price index, the Fed’s preferred inflation gauge, for clues on the trajectory of monetary policy.
Spot gold was little changed at $2,913.60 an ounce at 9:45 a.m. in London. The Bloomberg Dollar Spot Index rose 0.2%. Silver, platinum and palladium all rose.
Source: Bloomberg
