https://www.miningweekly.com
Gold|Hansen|Platinum
Gold|Hansen|Platinum
gold|hansen-company|platinum

Gold climbs to another record with Fed rate cut expected in days

Gold bars

Photo by Bloomberg

16th September 2024

By: Bloomberg

  

Font size: - +

Gold rose to a record as markets waited for the Federal Reserve to begin easing monetary policy for the first time in more than four years.

Bullion climbed as much as 0.4% to a high of $2 589.03/oz, extending last week’s 3.2% gain, ahead of the Fed’s September 17 to 18 meeting that’s widely expected to result in a rate cut of at least 25 basis points.

Still, opinions are divided on the pace of the US central bank’s future easing path, with some traders and economists now expecting a larger, half-point reduction this week. Lower borrowing costs are often seen as bullish for gold, which doesn’t bear interest.

“Whether the Fed cuts by 25 or 50 bps does matter in the short term,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. The decision “may send a stronger signal” about how the Federal Open Market Committee “views the current economic outlook,” he said.

The precious metal was also supported by a weaker US dollar, which fell after an apparent assassination attempt against former President Donald Trump.

Gold has gained more than a quarter this year and last hit a record on Friday, supported by the Fed’s signals it would pivot to monetary easing. Central-bank buying and strong haven demand due to conflicts in the Middle East and Ukraine have helped the advance. Interest from retail investors is also picking up.

“A disunited world loaded up on geopolitical risks and debt will continue to underpin prices,” according to Hansen.

Spot gold advanced 0.4% to $2 587.66 at 9:55 a.m. in London. The Bloomberg Dollar Spot Index dipped 0.3%, after declining 0.8% over the previous three sessions. Silver and palladium rose, while platinum fell.

Edited by Bloomberg

Comments

Showroom

Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 06 December 2024
Magazine round up | 06 December 2024
6th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.076 0.109s - 179pq - 2rq
Subscribe Now