Spot gold rose 0.2% to $2,473.89 per ounce. The appeal of bullion, which does not bear interest, increases when interest rates fall.
He gold price hit a new record high on Wednesday, boosted by comments from Federal Reserve officials that increase expectations of a reduction in interest rates in the United States in September.
Spot gold records an increase of 0.2%, standing at US$2,473.89 per ounceafter hitting an all-time high of $2,482.29 at the start of the session. U.S. gold futures rose 0.4% to $2,478.50.
Gold and interest rates
“It is clear that the Federal Reserve will cut rates in September, and along with the de-dollarization trend, where central banks have been buying more gold against US Treasury bond yields, “This is driving gold to these record levels,” said Alex Ebkarian, chief operating officer of Allegiance Gold.
Fed Chairman Jerome Powell The Fed said Monday that recent inflation figures “provide some confidence” that the pace of price increases is returning sustainably to the central bank’s target. Fed officials Adriana Kugler and John Williams expressed cautious optimism about inflation returning to their 2% target.
gold
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According to Ebkarian, demand in Western markets, geopolitical risks and possible threats of recession could boost the price of gold to US$2,600-2,700 in the second half of the year. Markets consider a US rate cut in September to be 100% likely, according to CME’s FedWatch tool.
The appeal of bullion, which does not generate interest, increases when interest rates decreaseIn other precious metals, silver was down 1.4% at $30.95 an ounce, platinum was up 2.1% at $1,021.20 and palladium was up 2.1% at $979.48.
Source: Ambito
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