Gold prices rose to an all-time high during trading on Friday, August 16, as the dollar weakened on growing expectations that the US Federal Reserve will cut interest rates in the -September, and with tensions in the Middle East raising demand for bullion.
Spot gold rose 1.7% to $2,498.72 an ounce by 02:27 PM EST (1827 GMT), after hitting a record high of $2,500.99 earlier.
Gold futures in the United States rose 1.8% to $2,537.80 when they settled, according to Reuters. It achieved weekly gains of 2.6% this week.
The dollar index fell 0.4% and recorded a fourth-week loss, making gold more attractive to overseas buyers.
“Gold rose to an all-time high and broke through $2,500 after two weeks of volatile trading as bulls exerted their last will,” said Tai Wong, an established independent metals trader. in New York.
He said: “Attention will now shift to focus on Jackson Hole and Fed Chairman Powell’s speech a week from today to provide a more detailed look at the shape of the upcoming interest rate cuts.”
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US Federal Reserve Chairman Jerome Powell is scheduled to deliver statements on the economic outlook next Friday, August 23, the first full day of the US Federal Reserve’s annual economic conference in Kansas City in Jackson Hole , Wyoming.
The July releases of the producer and consumer price indexes this week signaled a slowdown in inflation, which could keep the Fed on track to cut interest rates by 25 basis points next month. .
The President of the Chicago Fed, Austin Goolsbee, said that the US economy shows no signs of slowing down, so central bank officials must be careful about maintaining the restrictive policy for too long.
“The geopolitical conflict that is going on, the possible escalation that Iran could be involved in, the war in Ukraine, all these factors contribute to safe demand for gold,” said Gainesville Queens senior market analyst Everett Millman.
Gold is considered a hedge against geopolitical and economic uncertainty, and tends to thrive in a low interest rate environment.
Silver rose 1.4% to $28.81 an ounce, platinum fell 0.2% to $950.76, and palladium fell 0.1% to $943.25.
All metals recorded weekly gains, according to Reuters.
2024-08-16 22:10:37
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