Gold set for biggest weekly gain since April amid Fed rate cut hopes
(MENAFN) Gold prices are set for their most substantial weekly gain since April, driven by increased safe-haven demand and anticipation that the Federal Reserve might begin cutting interest rates as early as September. Spot gold has risen by 0.7 percent to reach USD2,463.46 per ounce, approaching the record high of USD2,483.60 set on July 17. Over the past week, prices have surged by 3.2 percent, while U.S. gold futures have climbed 1.1 percent to USD2,508. Federal Reserve Chairman Jerome Powell's recent comments about the potential for rate cuts if the U.S. Economy remains on its current trajectory have further bolstered gold prices.
According to Ole Hansen, head of commodity strategy at Saxo Bank, the price of gold could soon hit the USD2,500 mark if weak economic data persists. The prospect of a Federal Reserve rate cut, coupled with ongoing geopolitical tensions, rising debt concerns, and renewed demand from central banks and ETF investors, is expected to support further increases in gold prices. Gold remains a preferred asset for hedging against geopolitical and economic risks, and lower interest rates diminish the opportunity cost of holding the precious metal. In addition to gold, other precious metals are also experiencing gains, with spot silver increasing by 1.5 percent to USD28.97, platinum rising by 1.4 percent to USD969.52, and palladium climbing 0.6 percent to USD910.25. All three metals are on track for weekly gains as well.
MENAFN04082024000045015682ID1108514797
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.