By Anjana Anil
(Reuters) – Gold edged down on Wednesday as investors booked profits after it soared to a record high as expectations for another big rate cut by the U.S. Federal Reserve bolstered bullion’s bull rally.
Spot gold was down 0.2% at $2,652.99 per ounce by 1657 GMT after hitting an all-time high of $2,670.43 earlier. U.S. gold futures were steady at $2,677.30.
“Gold is in this area now where you may start to see some risk being taken off the table,” said Daniel Pavilonis, senior market strategist at RJO Futures.
Gold investors might pause to book some profits after having caught a good move, Pavilonis said.
Gold’s record rally was fuelled by the Fed cutting rates by 50 basis points last week. Investors see about a 59% chance of another 50 bps cut in November, according to the CME FedWatch Tool.
Lower interest rates boost non-yielding gold’s appeal.
Traders await Fed Chair Jerome Powell’s remarks and U.S. inflation data later this week for further policy cues.
“We could see $2,700 per ounce level in the next day or two if we continue to see weakening labour, and if we see the Fed presidents all reaffirming 50 basis point cuts,” said Phillip Streible, chief market strategist at Blue Line Futures.
Bullion has risen over 28% in 2024, with gains attributed to central bank easing and geopolitical issues.
ETF flows and ancillary factors, including geopolitical tensions across the Middle East and the massive stimulus measures put in place by China, continue to support and drive gold prices higher over the course of the last several weeks and today, said David Meger, director of metals trading at High Ridge Futures.
Spot silver fell 1.6% to $31.62 per ounce, having reached its highest levels since May earlier. Platinum added 0.5% to $990.80 and palladium shed 1.9% to $1,036.75.
(Reporting by Anjana Anil in Bengaluru, Editing by Nick Zieminski and Tasim Zahid)
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