Gold Surges To Record High As Dollar Weakens

2024-09-13 03:12:54

(MENAFN- Investor Ideas) Gold prices surged to a record high on Friday, marking a strong weekly gain after a period of consolidation. The bullion benefited from a weaker dollar as markets anticipate Fed interest rate cuts this month. Expectations of a 50-basis-point rate cut strengthened, pushing gold beyond its three-week trading range. Former New York Fed President Bill Dudley also noted that a 50-basis-point cut was more likely, influencing market sentiment.

Traders are now focusing on U.S. consumer sentiment data due later today, which could provide further insights into the state of the economy. Attention will then shift to the Federal Reserve meeting next week.

The outlook for gold remains strong, buoyed by easing monetary policies from major central banks and central bank gold purchases. Moreover, ongoing geopolitical tensions in the Middle East and Eastern Europe, along with global economic uncertainties, could keep gold prices elevated.

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