“If inflation numbers remain subdued, gold will continue to rise,” commented one market analyst.
Gold hits three-month high as rate cut bets rise
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He Gold price hit its highest level in three months on Mondaydriven by increased bets on a June cut in interest rates by the US Federal Reserve.
Spot gold gained 0.8% to $2,099.79 per ouncea, its highest price since December 4, when it reached a historical maximum of US$2,135.40. Gold futures in the United States fell 0.2% to $2,091.50.
Gold gained about $50 last weekdriven by tepid manufacturing and construction spending in the United States, and reducing price pressures.
“Gold could easily surpass its all-time highs”said Phillip Streible of Blue Line Futures in Chicago. “(Fed Chairman Jerome) Powell will speak twice this week and could come out and be a little more cautious (…) we could see a default in the (US) employment data on Friday,” all factors that will help gold, he added.
“If inflation figures remain moderate, gold will continue to rise”said Kitco Metals analyst Jim Wyckoff.
Traditionally considered a safe way to preserve wealth, The non-interest-bearing gold metal suffers when high rates to curb upward price pressures increase returns on competing assets like bonds and boost the dollar.making the bullion more expensive for buyers with other currencies.
In other precious metals, Spot silver rose 1.4% to $23.47 an ounce; platinum rose 0.8% to $894.10; and palladium fell 0.6% to $949.50.
Source: Ambito
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