https://www.miningweekly.com
Gold|Hansen|Manufacturing|Platinum|Steel|Manufacturing
Gold|Hansen|Manufacturing|Platinum|Steel|Manufacturing
gold|hansen-company|manufacturing|platinum|steel|manufacturing-industry-term

Gold steady after surging to record on rate-cut bets, haven bids

6th March 2024

By: Bloomberg

  

Font size: - +

Gold steadied after surging to a record high in the previous session, boosted by expectations for US rate cuts, geopolitical tensions and the risk of a pullback for equity markets.

Bullion rose to a peak of $2 141.79 an ounce on Tuesday, surpassing the previous high set in early December. The precious metal has climbed almost 5% over the last five sessions.

Gold’s ascent has taken some in the market by surprise, particularly since there hasn’t been any major change in expectations for when the Federal Reserve will lower borrowing costs. Swaps markets show a 62% chance of a cut in June, compared with 58% at the end of February. Lower rates are typically positive for bullion, which doesn’t offer any interest.

“The velocity and the speed was very sudden, very fast,” said James Steel, an analyst at HSBC Holdings. “It didn’t seem to have a smoking gun.”

Beyond rates, other factors have contributed to gold’s strength. Macro funds, which haven’t been active in the market until recently, were a new force of buying. Bullion’s role as a haven asset is also being aided by elevated Middle East tensions and disruptions to global shipping, China’s persistent economic woes and the US presidential election at the end of the year.

The risk of a US stock market correction — flagged by weak manufacturing data on Friday — may have persuaded some investors to move out of equities and into gold, said Ole Hansen, a commodity strategist at Saxo Bank A/S.

Spot gold declined 0.1% to $2 127.03 an ounce as of 9 a.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.1%. Silver edged higher, while platinum and palladium were flat.

Edited by Creamer Media Reporter

Comments

Latest News

Magazine round up | 19 July 2024
Magazine round up | 19 July 2024
19th July 2024

Showroom

The Southern African Institute of Mining and Metallurgy
The Southern African Institute of Mining and Metallurgy

The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...

VISIT SHOWROOM 
Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Platinum, diamonds, hydrogen make headlines
Platinum, diamonds, hydrogen make headlines
19th July 2024
Magazine round up | 19 July 2024
Magazine round up | 19 July 2024
19th July 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:0.201 0.235s - 127pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: