Investors expected the speech of the president of the Federal Reserve, Jerome Powell, to learn about new clues about monetary policy. Gold, which does not pay interest, tends to have a better behavior in a low interest rates environment.
The Gold prices played a new historical maximum This Tuesday, driven by growing expectations of new cuts of interest rates in the United Stateswhile investors expected the speech of the president of the Federal Reserve, Jerome Powellto learn about new clues about monetary policy.
Cash gold rises 1% to U $ 3,784.73 dollars per ounce, after reaching a new record of U $ 3,791,10 dollars, earlier in the session.
American gold futures for delivery in December earn a 1.1%, to U $ 3,815,35 dollars
Among other precious metals, the silver in cash wins a 0.8% Au $ S44.57 dollars an ounce, around 14 years. He platinum adds a 3.8% au $ 1,479.25 and the palladium climb 3% au $ 1,250 dollars.
Federal Reserve: Investors expect comments from Governors and Powell
The new governor of the Federal Reserve, Stephen lookhe advocated Monday for an aggressive cut of the fees, adding that the Federal Reserve was wrongly interpreting the tightening of its monetary policywhich would endanger the labor market, an opinion that was refuted by three of its colleagues, which consider that the Central Bank must keep the caution against inflation.
“The position of looking in favor of an expansive policy undoubted Ross Norman.
According to the CME Fedwatch tool, investors see two cuts of 25 basic points, one in October and one in December, with a 90% probability and 73% respectively.
China Gold Metals
Gold, which does not pay interest, tends to behave well in an environment of low interest rates.
“Gold is experiencing a good demand on the part of institutional investors, who are perhaps leaving the variable income as these markets reach maximums, along with a good demand from India,” Norman added.
The premiums of physical gold in India rose this week to their highest level in 10 months, since record prices close to the festive season failed to dissuade investors to buy bullion in forecast of new profits. For this reason, Norman stressed that, in the short term, Gold contributions depend on the sustained demand of India, a rebound in Chinese purchases and whether the increase in ETF holdings is durable.
SPDR Gold Trustthe bottom quoted in the stock market backed by the world’s largest gold, he said that his holdings raised a 0.6% At 1000.57 tons, a maximum of more than three years on Monday since Friday.
Source: Ambito
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