
403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Gold prices rise to reach record high of USD2,480 per ounce
(MENAFN) Gold prices surged on Wednesday, reaching a record high of USD2,480 per ounce, fueled by increasing speculation surrounding a potential interest rate cut by the U.S. Federal Reserve in September. This optimism follows recent comments made by Fed officials and reflects growing concerns stemming from weak economic data and decreasing inflationary pressures, which have collectively exerted downward pressure on bond yields. Such conditions enhance the appeal of gold, a non-yielding asset, making its outlook particularly positive.
Earlier this year, gold prices peaked at USD2,449.89 on May 20, despite facing challenges from a strong U.S. dollar and elevated interest rates. As of 11:56 a.m. UAE time on Wednesday, the precious metal was trading at USD2,473.20. Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, noted that the new record was primarily driven by falling U.S. yields, which reduce the opportunity cost of holding gold. Additionally, rising geopolitical tensions, particularly reports of an assassination attempt on Donald Trump, have contributed to gold's appeal, even though there is no confirmed link between this incident and the recent spike in prices.
Looking ahead, analysts anticipate that gold may soon reach the USD2,500 per ounce mark. However, some profit-taking might occur at this level, as current prices suggest that gold may be entering overbought territory. This indicates that it could have been purchased too rapidly in a short timeframe. As the markets are reacting to both Trump-related developments and the Federal Reserve's stance, a minor correction could be healthy.
Market expectations are leaning toward a rate cut of at least 25 basis points during the Fed's September meeting, with additional cuts anticipated before January 2025. Generally, the attractiveness of non-yielding assets like gold tends to increase when interest rates decline, further supporting the current bullish sentiment surrounding gold.
Earlier this year, gold prices peaked at USD2,449.89 on May 20, despite facing challenges from a strong U.S. dollar and elevated interest rates. As of 11:56 a.m. UAE time on Wednesday, the precious metal was trading at USD2,473.20. Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, noted that the new record was primarily driven by falling U.S. yields, which reduce the opportunity cost of holding gold. Additionally, rising geopolitical tensions, particularly reports of an assassination attempt on Donald Trump, have contributed to gold's appeal, even though there is no confirmed link between this incident and the recent spike in prices.
Looking ahead, analysts anticipate that gold may soon reach the USD2,500 per ounce mark. However, some profit-taking might occur at this level, as current prices suggest that gold may be entering overbought territory. This indicates that it could have been purchased too rapidly in a short timeframe. As the markets are reacting to both Trump-related developments and the Federal Reserve's stance, a minor correction could be healthy.
Market expectations are leaning toward a rate cut of at least 25 basis points during the Fed's September meeting, with additional cuts anticipated before January 2025. Generally, the attractiveness of non-yielding assets like gold tends to increase when interest rates decline, further supporting the current bullish sentiment surrounding gold.

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Most popular stories
Market Research

- Manuka Honey Market Report 2024, Industry Growth, Size, Share, Top Compan...
- Modular Kitchen Market 2024, Industry Growth, Share, Size, Key Players An...
- Acrylamide Production Cost Analysis Report: A Comprehensive Assessment Of...
- Fish Sauce Market 2024, Industry Trends, Growth, Demand And Analysis Repo...
- Australia Foreign Exchange Market Size, Growth, Industry Demand And Forec...
- Cold Pressed Oil Market Trends 2024, Leading Companies Share, Size And Fo...
- Pasta Sauce Market 2024, Industry Growth, Share, Size, Key Players Analys...
Comments
No comment