{"id":72051,"date":"2024-07-17T05:00:17","date_gmt":"2024-07-17T05:00:17","guid":{"rendered":"http:\/\/guid_108007267"},"modified":"2024-07-17T05:00:17","modified_gmt":"2024-07-17T05:00:17","slug":"gold-prices-extend-gains-to-hit-new-record-on-fed-rate-cut-optimism","status":"publish","type":"post","link":"https:\/\/wp.timesamerica.net\/gold-prices-extend-gains-to-hit-new-record-on-fed-rate-cut-optimism\/","title":{"rendered":"Gold prices extend gains to hit new record on Fed rate cut optimism"},"content":{"rendered":"\n<div><img decoding=\"async\" src=\"https:\/\/wp.timesamerica.net\/wp-content\/uploads\/2024\/07\/gold-prices-extend-gains-to-hit-new-record-on-fed-rate-cut-optimism.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107385369\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div class=\"InlineImage-imagePlaceholder\" style=\"padding-bottom:55.55555555555556%\">\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<\/div>\n<div>\n<div class=\"InlineImage-imageEmbedCaption\">One kilogram gold bullion at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023.&nbsp;<\/div>\n<div class=\"InlineImage-imageEmbedCredit\">Bloomberg | Bloomberg | Getty Images<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>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.<\/p>\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><span class=\"waslinkname\">Spot gold prices<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> rose 0.5% to $2,482.29 per ounce, hitting an all-time high according to LSEG data. <span class=\"waslinkname\">Gold futures<\/span> climbed to $2,478.4 an ounce.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>On Monday, Powell said the <span class=\"waslinkname\">Fed won&#8217;t wait for inflation<\/span> to reach the central bank&#8217;s 2% target before it begins cutting, due to the delay in policy effects. He said the Fed is looking for &#8220;greater confidence&#8221; that inflation will return to the 2% level. The <span class=\"waslinkname\">monthly inflation rate dipped in June<\/span> \u2014 the first time in over four years.<\/p>\n<p>And that has given market watchers confidence. According <span class=\"waslinkname\">to the CME FedWatch tool<\/span>, traders are <span class=\"waslinkname\">convinced the Fed will cut rates by September<\/span>. As interest rates fall, gold tends to become more appealing compared to fixed-income assets such as bonds.<\/p>\n<p>&#8220;The move has been ignited by signs of slowing inflation. That has been followed up by weak economic data,&#8221; ANZ&#8217;s senior commodity strategist Daniel Hynes <span class=\"waslinkname\">wrote in a note<\/span>.<\/p>\n<p>Gold prices <span class=\"waslinkname\">have been breaching new highs<\/span> 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&#8217; purchase of bullion.<\/p>\n<p>&#8220;Gold&#8217;s ability to find support in any condition this year is worth highlighting,&#8221; said Vivek Dhar, Commonwealth Bank of Australia&#8217;s director of mining and energy commodities research.<\/p>\n<p>&#8220;These drivers defied a stronger US dollar, which was largely driven by the market delaying expectations of Fed Fund rate cuts,&#8221; said the research analyst, adding that gold prices could rise above the bank&#8217;s forecast of $2,500 per ounce by the end of the year.<\/p>\n<\/div>\n<div id=\"ArticleBody-MobileAdhesion\" class=\"MobileAdhesion-container\" data-module=\"mps-slot\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>One kilogram gold bullion at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023.&nbsp; 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 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":72052,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-72051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bussiness","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/72051"}],"collection":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/comments?post=72051"}],"version-history":[{"count":0,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/72051\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media\/72052"}],"wp:attachment":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media?parent=72051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/categories?post=72051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/tags?post=72051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}