Gold inches higher; Powell's speech in focus for rate cues
Shafaq News/ Gold edged up on Thursday, hovering near record highs, on expectations of another big U.S. interest rate cut this year, although gains were limited ahead of remarks by key Federal Reserve policymakers.
Spot gold was up 0.2% at $2,660.75 per ounce, as of 0601 GMT. Bullion hit a record high of $2,670.43 on Wednesday. U.S. gold futures were steady at $2,684.00.
"A mild bounce from the U.S. dollar has managed to keep gold prices in check, however, with markets still anticipating more aggressive cuts from the Fed between now and the year-end, the risk appears to be to the upside for the market," said Tim Waterer, chief market analyst, KCM Trade.
Bullion has risen nearly 29% so far in 2024, hitting record highs several times, fuelled by monetary policy easing by major global banks and geopolitical concerns.
Lower rates reduce the opportunity cost of holding bullion, which is also viewed as a safe asset amid economic and political turmoil.
Last Wednesday, the Fed cut key rates by 50 basis points, with traders seeing a 62% chance of an additional 50 bps reduction in November, according to the CME FedWatch Tool.
Later in the day, Fed Chair Jerome Powell is set to give opening remarks at a conference, where New York Fed President John Williams and Fed Vice Chair for Supervision Michael Barr will also speak.
Additionally, U.S. jobless claims data on Thursday and the core personal consumption expenditure index - the Fed's preferred inflation - on Friday, will be in focus.
Gold prices are currently fluctuating within a range of $2,610-$2,690, showing an upward trend, unless the PCE or labor figures exceed expectations, said Nicholas Frappell, global head of institutional markets, ABC Refinery.
Spot silver climbed 0.3% to $31.931 per ounce, platinum rose 1.4% to $1,001.71 and palladium gained 1.7% to $1,055.66.
(REUTERS)
