- August 22, 2024
- By: Admin1_blog
- Precious Metal Market
Gold prices regained lost ground on Wednesday to hover close to their all-time highs after minutes from the U.S. Federal Reserve’s last meeting showed officials strongly leaned towards an interest rate cut at their September policy meeting.
Spot gold was up 0.1% at $2,516.01 per ounce after hitting a record high of $2,531.60 on Tuesday.
U.S. gold futures settled 0.1% lower at $2,547.50.
“Gold is closing at the highs after Fed minutes indicated that ‘a vast majority’ of the committee was prepared to cut rates in September,” said Tai Wong, a New York-based independent metals trader.
“I am cautiously optimistic because all the market-friendly news is already out there. Gold is likely to grind higher but unlikely to accelerate aggressively without an unforeseen event driver.”
At the July meeting, “the vast majority” of policymakers “observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting,” according to the minutes.
Following the Fed minutes, the dollar extended losses to a more than seven-month low, while benchmark U.S. 10-year bond yields fell to a more than two-week low.
Market’s focus will now turn to Fed Chair Jerome Powell’s keynote speech at the Jackson Hole symposium on Friday.
Elsewhere, spot silver rose 0.6% to $29.61 per ounce. Platinum gained 2.6% to $970.75 and palladium rose 2.7% to $951.00, its highest level in over a month.
“There has been more interest in PGMs as the fundamentals are expected to improve, so prices started to move higher and particularly palladium investors needed to cover their shorts,” said Bart Melek, head of commodity strategies at TD Securities.
The auto-catalyst metals also got a lift after Ford Motor said it was killing a planned three-row electric SUV and pushing back a new electric version of its best-selling pickup, the F-150.
Both platinum and palladium are used by automakers in catalytic converters to clean car exhaust fumes.
Source : cnbc
