Gold jumped to a record Tuesday as rising expectations of a September interest rate cut bolstered demand for bullion.<\/p>\n
Gold futures\u00a0advanced 1.7% to $2,471.1, topping the previous high of $2,454.20 reached May 20.<\/p>\n
Spot gold jumped 1.8% to $2,465.95 during the session, which is an all-time high according to LSEG data going back to 1968 that has not been adjusted for inflation.<\/p>\n
Gold prices hit all-time highs earlier this year before pulling back as the prospect of higher-for-longer interest rates dampened investor enthusiasm for the precious metal. But interest in the asset has grown after\u00a0June\u2019s softer inflation data\u00a0and some recently\u00a0dovish comments\u00a0from Federal Reserve Chair Jerome Powell combined to raise the odds of rate cuts coming this year. Markets are pricing in\u00a0100% odds\u00a0of a rate cut in September now, according to futures trading tracked by the CME FedWatch tool.<\/p>\n
A weakening dollar has also supported demand for bullion. On Tuesday, the U.S. greenback rebounded after falling to a\u00a0five-week low.<\/p>\n
\u201cInterest to \u2018buy-the-dip\u2019 remained prevalent\u00a0among investors amid strong sentiment towards gold, which is likely why the market\u00a0was quick to rally on soft U.S. data prints and dovish Fed expectations,\u201d UBS\u2019 strategist Joni Teves said in a note on Friday.<\/p>\n
\u201cWith the market\u00a0sitting just above the psychological $2400 level, we think risks are skewed to the upside,\u201d Teves continued. \u201cWe think positioning remains lean and there\u2019s space for investors to build gold exposure.\u201d<\/p>\n
Gold rallied to record highs in the first half of 2024 on the back of a multi-year spike in demand from central banks around the world, as mounting global geopolitical risks boosted interest in the safe haven asset. According to UBS, central bank buying of bullion is the highest it\u2019s been since the late 1960s.<\/p>\n
\u201cWith some central banks now questioning the safety of holding USD- and EUR-denominated assets (following the financial and debt crises and more recently the war in Ukraine), many are choosing to instead fill their reserves with gold,\u201d read a note last month from UBS.<\/p>\n
Gold mining stocks also advanced on Tuesday. The\u00a0VanEck Gold Miners ETF\u00a0gained 3%, on pace for a fifth winning day in six. The U.S.-listed shares of\u00a0Harmony Gold\u00a0and\u00a0Gold Fields\u00a0rose 16% and 6%, respectively.<\/p>\n<\/p>\n
Gold jumped to a record Tuesday as rising expectations of a September interest rate cut bolstered demand for bullion. Gold futures\u00a0advanced 1.7% to $2,471.1, topping the previous high of $2,454.20 reached May 20. Spot gold jumped 1.8% to $2,465.95 during the session, which is an all-time high according to LSEG data going back to 1968 […]<\/p>\n","protected":false},"author":0,"featured_media":6205,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6204","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/6204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=6204"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/6204\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/6205"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=6204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=6204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=6204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}