One
kilogram
gold
bullion
at
the
YLG
Bullion
International
Co.
headquarters
in
Bangkok,
Thailand,
on
Friday,
Dec.
22,
2023.
Bloomberg
|
Bloomberg
|
Getty
Images
Gold
prices
continued
to
notch
new
records
Wednesday,
lifted
by
increasing
conviction
that
the
Federal
Reserve
will
cut
interest
rates
in
September
following
comments
from
Fed
Chair
Jerome
Powell.
Spot
gold
prices
rose
0.5%
to
$2,482.29
per
ounce,
hitting
an
all-time
high
according
to
LSEG
data.
Gold
futures
climbed
to
$2,478.4
an
ounce.
On
Monday,
Powell
said
the
Fed
won’t
wait
for
inflation
to
reach
the
central
bank’s
2%
target
before
it
begins
cutting,
due
to
the
delay
in
policy
effects.
He
said
the
Fed
is
looking
for
“greater
confidence”
that
inflation
will
return
to
the
2%
level.
The
monthly
inflation
rate
dipped
in
June
—
the
first
time
in
over
four
years.
And
that
has
given
market
watchers
confidence.
According
to
the
CME
FedWatch
tool,
traders
are
convinced
the
Fed
will
cut
rates
by
September.
As
interest
rates
fall,
gold
tends
to
become
more
appealing
compared
to
fixed-income
assets
such
as
bonds.
“The
move
has
been
ignited
by
signs
of
slowing
inflation.
That
has
been
followed
up
by
weak
economic
data,”
ANZ’s
senior
commodity
strategist
Daniel
Hynes
wrote
in
a
note.
Gold
prices
have
been
breaching
new
highs
in
recent
months
due
to
its
appeal
as
a
safe-haven
asset
against
the
backdrop
of
escalating
Middle
East
tensions,
as
well
as
central
banks’
purchase
of
bullion.
“Gold’s
ability
to
find
support
in
any
condition
this
year
is
worth
highlighting,”
said
Vivek
Dhar,
Commonwealth
Bank
of
Australia’s
director
of
mining
and
energy
commodities
research.
“These
drivers
defied
a
stronger
US
dollar,
which
was
largely
driven
by
the
market
delaying
expectations
of
Fed
Fund
rate
cuts,”
said
the
research
analyst,
adding
that
gold
prices
could
rise
above
the
bank’s
forecast
of
$2,500
per
ounce
by
the
end
of
the
year.
