By Daksh Grover
(Reuters) – Gold prices were steady on Thursday, hovering close to record highs, on expectations of another big U.S. rate cut this year, although gains were limited ahead of remarks by key Federal Reserve policymakers later in the day.
Spot gold was up 0.2% at $2,661.25 per ounce, as of 0334 GMT. Bullion hit a record high of $2,670.43 on Wednesday. U.S. gold futures were steady at $2,684.50.
“A mild bounce from the U.S. dollar has managed to keep the gold price in check, however with markets still anticipating more aggressive cuts from the Fed between now and year-end, the risk appears to be to the upside for the gold market,” said said Tim Waterer, chief market analyst at KCM Trade. [GOL/]
Bullion has risen nearly 29% so far in 2024 and hit record highs several times this year, largely fuelled by monetary policy easing by major global banks and geopolitical concerns.
Lower rates reduce the opportunity cost of holding bullion, which is also viewed as a safe asset amid economic and political turmoil.
Last Wednesday, the Fed delivered a 50-basis-point rate cut, with traders seeing a 62% chance of an additional half-percentage-point reduction in November, according to the CME FedWatch Tool.
Fed Chair Jerome Powell is set to give opening remarks at a conference on Wednesday, where New York Fed President John Williams and Fed Vice Chair for Supervision Michael Barr are also scheduled to speak.
Additionally, U.S. jobless claims data on Thursday and the core personal consumption expenditure (PCE) index – the Fed’s preferred inflation – on Friday, will be eyed for further rate cues.
Gold prices are currently fluctuating within a range of $2,610 to $2,690, showing an upward trend, unless the PCE or labor figures exceed expectations, said Nicholas Frappell, global head of institutional markets at ABC Refinery.
Spot silver was steady at $31.85 per ounce, platinum rose 0.8% to $995.90 and palladium gained 1.2% to $1,048.75.
(Reporting by Daksh Grover in Bengaluru; Editing by Alan Barona and Sonia Cheema)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.