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Gold prices continue to climb amid signals of Fed rate cuts
(MENAFN) Gold prices continued to climb on Monday, building on gains from the previous session, according to a UK news agency. This uptick followed comments from Federal Reserve Chairman Jerome Powell that fueled expectations for an interest rate cut by the US central bank in September.
Spot gold edged up by 0.2 percent, reaching USD2,516.09 per ounce by 0027 GMT, while U.S. gold futures also saw a 0.2 percent increase, trading at USD2,551.30. The U.S. dollar remained near its lowest level in almost eight months, making gold more affordable for investors using other currencies. Meanwhile, 10-year U.S. Treasury yields experienced a decline.
In a statement last Friday, Powell expressed his support for lowering interest rates. He emphasized that "the time has come" for the Federal Reserve to take this action, citing growing risks to the labor market despite inflation nearing the central bank's 2 percent target.
Market expectations reflect this sentiment, with the CME Group's FedWatch tool indicating that 64 percent of traders anticipate a 25 basis point rate cut next month, while 36 percent are predicting a more substantial reduction of up to 50 basis points. Among other precious metals, silver rose 0.3 percent to USD29.90 per ounce, platinum held steady at USD962.65, and palladium dipped by 0.3 percent to USD959.43 per ounce.
Spot gold edged up by 0.2 percent, reaching USD2,516.09 per ounce by 0027 GMT, while U.S. gold futures also saw a 0.2 percent increase, trading at USD2,551.30. The U.S. dollar remained near its lowest level in almost eight months, making gold more affordable for investors using other currencies. Meanwhile, 10-year U.S. Treasury yields experienced a decline.
In a statement last Friday, Powell expressed his support for lowering interest rates. He emphasized that "the time has come" for the Federal Reserve to take this action, citing growing risks to the labor market despite inflation nearing the central bank's 2 percent target.
Market expectations reflect this sentiment, with the CME Group's FedWatch tool indicating that 64 percent of traders anticipate a 25 basis point rate cut next month, while 36 percent are predicting a more substantial reduction of up to 50 basis points. Among other precious metals, silver rose 0.3 percent to USD29.90 per ounce, platinum held steady at USD962.65, and palladium dipped by 0.3 percent to USD959.43 per ounce.
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