Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Precious Metal»Gold price tops $2,500 on outlook for lower rates
    Precious Metal

    Gold price tops $2,500 on outlook for lower rates

    August 16, 20242 Mins Read


    The precious metal is up more than 20% this year amid mounting optimism on monetary easing and large purchases by central banks. It also has seen increased demand as a haven asset due to rising geopolitical risks, including tensions in the Middle East and Russia’s war with Ukraine.

    Bullion began shooting higher earlier in the year — surprising seasoned analysts and veterans as there wasn’t always a clear macro catalyst to justify its price rally. It sustained those gains even as traders dialed back bets on the timing of rate cuts. More recently, gold has ticked higher as US officials widely are expected to start lowering rates soon.

    A slew of US data on recent activities has convinced markets the US central bank is on the cusp of lowering borrowing costs from a more than two-decade high, with the metal’s conventional drivers returning to the fore.

    There’s debate around how deep the Fed may cut rates given recent economic readings gave conflicting signals on the state of the US economy.

    Gold investors are “typically more prone to think the Fed will be more aggressive on the monetary accommodation front,” said Bart Melek, global head of commodity strategy at TD Securities. Prices could rise further to $2,700 in the coming quarters, as “the macro/monetary and central bank ducks are aligning in a row,” he said.

    Investor positioning

    Speculators boosted their net-bullish bets on Comex gold futures to a near four-year high in the week ending Aug. 13, Commodity Futures Trading Commission data show. Meanwhile, gold holdings in exchange-traded funds have risen in recent months following a couple of years of outflows, data compiled by Bloomberg show.

    Traders on Friday assessed the latest economic data for clues on the outlook for Fed policy. Figures showed new-home construction in the US fell in July to the lowest level since the aftermath of the pandemic as builders respond to weak demand.

    It “is another indicator that a recession’s on its way,” said Bob Haberkorn, senior market strategist at RJO Futures. The Fed will cut rates “and go further than what was expected before.”

    Spot gold gained 2.1% to $2,508.82 an ounce as of 4:06 p.m. in New York. Silver and palladium advanced, while platinum was little-changed.

    (By Yvonne Yue Li)





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    XAG/USD maintains position near $39.00, five-week highs

    Precious Metal

    Gold and Silver About to ‘Beeline’ to All-Time Highs, According to Fundstrat Analyst

    Precious Metal

    Secret criminal past of ‘Traveller King’ who was buried in a ‘six-figure, solid gold’ coffin

    Precious Metal

    Gujarat emerges as India’s copper hub, amid soaring demand from sunrise sectors – Industry News

    Precious Metal

    Gold, Silver prices dip this week, but long-term outlook remains bullish

    Precious Metal

    Bundesbank weighs abandoning Frankfurt headquarters

    Precious Metal
    Leave A Reply Cancel Reply

    Top Picks
    Cryptocurrency

    Is Ethereum About To Retest $4,000? Analyst Foresees 3x Rally

    Precious Metal

    Pan Asia Metals signs exclusivity deal on Chilean copper project

    Cryptocurrency

    Top Cryptocurrencies to Invest in 2024: Expert Picks and Insights

    Editors Picks

    The Ripple Effect: Is This Ruling a Turning Point for Cryptocurrency Regulation?

    August 8, 2024

    Banking on innovation: South Africa’s fintech revolution

    August 26, 2024

    FE Investments selects technology vendor Jacobi to accelerate growth of its Managed Portfolio Service (MPS)

    February 13, 2025

    “Blood on the Silver Screen” : Sasami plonge son metal dans le mainstream

    March 3, 2025
    What's Hot

    Final will ‘go down in generations’ – GB silver medallist Josh Kerr

    August 7, 2024

    Copper Market Size 2024: Industry Overview, Manufacturers

    October 17, 2024

    Canada pension CIO hunting for more private investments at home – BNN Bloomberg

    April 22, 2025
    Our Picks

    New Process Joins Plastic to Metal

    August 16, 2025

    Le bénéfice de SM Investments augmente de 9 % au premier trimestre

    May 7, 2025

    L’entreprise chinoise Evergrande Property Services prévoit une baisse de 37 % de son bénéfice annuel -Le 07 mars 2025 à 13:19

    March 7, 2025
    Weekly Top

    Get ready for fracking, Reform UK tells energy firms

    August 24, 2025

    New audit “safari” for agricultural subsidies

    August 24, 2025

    Prudently managing post-retirement portfolio need of the hour

    August 24, 2025
    Editor's Pick

    US stock futures and major Asian gauges make gains as trade war worries ease

    May 13, 2025

    Is digital Gold replacing the actual precious metal in 2025?

    March 6, 2025

    Pi Network 2025 Review – a groundbreaking digital currency

    April 9, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.