Gold hits fresh record as Fed rate-cut optimism fuels demand

20th May 2024

By: Bloomberg


Font size: - +

Gold notched a fresh all-time high, as investor demand soared across the broader metals complex amid increasing optimism the US will cut rates this year.

Bullion jumped as much as 1.1% to hit $2 440.59 an ounce in early Asian hours, surpassing a previous intraday record reached in April. Traders have boosted bets in recent sessions that the Federal Reserve could reduce borrowing costs as early as September.

The US dollar fell and Treasuries rallied last week, after data released on Wednesday showed inflation in April eased more than expected. That offered support for the precious metal, which doesn’t pay interest and is priced in the greenback.

Hedge funds trading Comex futures boosted bullish bets on gold to a three-week high in the week ending May 14, according to the latest data from the Commodity Futures Trading Commission.

Elsewhere, geopolitical risks in Russia and the Middle East re-emerged after a Ukrainian drone strike on a small Russian refinery halted operations on Sunday, while a China-bound oil tanker was hit by a Houthi missile in the Red Sea on Saturday. Precious metals are among assets that tend to benefit from haven demand.

Spot gold was up 0.9% to $2 437.48 an ounce as of 9:12 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat, following a 0.7% decline last week to its weakest in more than a month. Silver, palladium and platinum all climbed.

Meanwhile, silver was trading near an 11-year high, after a strong rally on Friday was helped by spillover sentiment in wider physical metals markets, where tightening supply has spurred investor demand for materials like copper. Unlike gold, the white metal is also considered an industrial commodity given its usage in things such as solar panels.

Edited by Bloomberg



SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...


Latest Multimedia

sponsored by

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
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?







sq:0.262 0.297s - 92pq - 2rq
1: United States
Subscribe Now
2: United States