Mexico City. Gold prices hit a record high on Friday as the dollar weakened on rising expectations of a rate cut by the Federal Reserve in September, at a time when tensions in the Middle East are boosting demand for bullion.
At 16:19 GMT (09:19 CET), spot gold gained 1.5 percent to $2,493.66 per ounce, after touching a record high of $2,500.99, and closed the week with a strong advance. U.S. gold futures rose 1.6 percent to $2,532.10.
The dollar index fell 0.3 percent during the session, heading for its fourth weekly loss, making gold more attractive to foreign buyers.
“Gold hit a new all-time high and surpassed $2,500 after two weeks of choppy trading as bulls finally imposed their will,” said Tai Wong, an independent metals trader based in New York.
“Attention will now turn to Jackson Hole and Fed Chairman (Jerome) Powell’s speech in a week to provide a more detailed perspective on the shape of the next rate cuts,” he added.
Powell is scheduled to give a speech on the economic outlook next Friday, the first full day of the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming.
This week’s July releases of producer and consumer price indexes showed inflation is easing, which could keep the Fed on track for a quarter-percentage point (0.25 point) rate cut next month.
In other precious metals, spot silver gained 0.4 percent to $28.49 an ounce, platinum fell 0.2 percent to $951.25 and palladium was flat at $943.88. All metals ended the week higher.
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– 2024-08-20 17:35:49
