Gold hits record peak as rate cut bets burnish appeal, silver jumps

Soegeefx AppsPrecious Metal MarketGold hits record peak as rate cut bets burnish appeal, silver jumps


Gold prices hit an all-time high on Monday as a slowing U.S. inflation trend boosted expectations that the Federal Reserve could deliver its first interest rate cut soon, while silver scaled a more than 11-year peak.

Spot gold was up 0.9% at $2,436.76 per ounce, as of 0340 GMT after hitting a record high of $2440.49 earlier in the session.

U.S. gold futures rose 1% at $2,440.60.

The main driver for gold is that there is a soft U.S. dollar and sentiment is being boosted on the basis that the Federal Reserve is expected to cut rates soon, said Kyle Rodda, a financial market analyst at

The dollar index remained subdued, making greenback-priced bullion more attractive to buyers holding other currencies. 

Data last week showed signs of cooling inflation and traders now expect a 65% chance of a U.S. rate cut by September.

Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.

Minutes of the Fed’s last policy meeting due on Wednesday along with comments from a slew of Fed speakers will be on investors’ radar for this week.

“Gold prices sneaked in a cheeky record high ahead of China’s (market) open on Monday. Yet as the move has not been confirmed with by a weaker U.S. dollar, it seems to have been caught a tailwind from higher metals futures on China’s exchanges,” said City Index senior analyst Matt Simpson. 

China, the top consumer of bullion and a majority of industrial metals, announced “historic” steps on Friday to stabilise its crisis-hit property sector.

According to Reuters technical analyst Wang Tao, spot gold may test resistance at $2,447 per ounce, a break above could trigger a gain to $2,455.

Spot silver rose 2.5% to $32.28 after hitting an over 11-year high.

Platinum rose 0.7% to $1,088.75, after hitting its highest since May 12, 2023. Palladium dropped 0.5% to $1,013.56.

Source : cnbc

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