United States – Spot gold prices broke a new historical high in yesterday’s trading at $2,466 per ounce, driven by the imminent reduction in US interest rates.
By 06:49 GMT, spot gold prices rose 1.85 percent, or $44.7, to $2,466 an ounce, compared to Monday’s close.
The previous historical peak for gold was recorded at the end of Monday’s session at $2,451 per ounce, and before that at $2,449 on May 20.
The rise in the price of the yellow metal comes following statements by US Federal Reserve Chairman Jerome Powell on Monday, in which he confirmed that indicators show that US inflation is heading towards its 2 percent target.
Powell said in statements reported by Bloomberg on Monday that the three US inflation readings during the second quarter of this year “increase somewhat confidence” that the pace of price increases is returning to the Fed’s target.
The US annual inflation rate fell to 3 percent in June, from 3.3 percent in May, recording the lowest level since June 2023.
Gold benefits from falling interest rates on the dollar, because the reduction reduces the attractiveness of the US currency as an investment and savings tool, while traders turn to gold-denominated funds or stock markets in search of higher returns.
The Federal Reserve has four meetings remaining this year, the closest of which is at the end of July, amid expectations that interest rates will remain unchanged at 5.5 percent, while analysts indicate that they will be reduced by next September.
Anatolia
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2024-07-18 13:00:55
