Gold hits record – Gold prices hit a record high on Monday as a slowdown in the US inflation trend boosted expectations that the Federal Reserve could soon implement its first interest rate cut, while silver climbed to a high of more than 11 years old.
Spot gold rose 1% to $2,438.44 an ounce, as of 0811 GMT, after hitting a record high of $2,449.89 earlier in the session. US gold futures rose 1.1% to $2,442.60.
Last week’s data showed signs of cooling inflation and traders now expect a 65% chance of a US rate cut by September. The dollar index remained weak, making dollar-priced bullion more attractive to buyers holding other currencies.
A weak U.S. dollar and expectations that the Federal Reserve will cut rates soon have helped gold prices, said Kyle Rodda, financial markets analyst at Capital.com. Bullion is known as a hedge against inflation, but higher rates increase the opportunity cost of holding non-performing gold.
Gold hits record
The minutes of the Federal Reserve’s latest policy meeting scheduled for Wednesday, along with comments from a series of Fed speakers, will be on investors’ radar this week. “Gold prices hit an unabashed all-time high ahead of China’s (market) open on Monday. However, as a weaker US dollar has not confirmed the move, it appears to have been caught by the tailwind of metals futures higher on China exchanges,” said Matt Simpson, senior analyst at City Index.
China, the largest consumer of bullion and most industrial metals announced “historic” measures on Friday to stabilize its crisis-hit real estate sector.
Spot silver rose 1.3% to $31.88 after hitting a more than 11-year high. “Silver’s relatively low price compared to gold and its strong fundamentals revitalize investor interest. “Platinum is trading at a premium to palladium with rising ETF inflows,” ANZ analysts wrote in a note.Gold hits record
Platinum fell 0.2% to $1,078.88, after hitting its highest since May 12, 2023, earlier in the session. Palladium fell 0.2% to $1,006.49.Gold hits record