As traders increased their bets on the U.S. Federal Reserve beginning a cycle of interest rate cuts, gold prices firmed on Thursday, staying close to a record peak set the previous session. This restrained advances in the dollar and Treasury rates.
Averaging $2,464.13 an ounce as of 1006 GMT, spot gold was up 0.2% from its all-time high of $2,483.60 on Wednesday. Additionally, US gold futures increased by 0.3% to $2,467.30.
"Gold is still in high demand due to rising optimism that US interest rates would drop this year. The desire for gold has increased due to recent dovish remarks made by Fed officials, a generally declining dollar, and low Treasury rates, according to Lukman Otunuga, senior research analyst at FXTM.
Otunuga continued, "More indications of cooling U.S. labour markets and more dovish comments from Fed officials could sustain this upward momentum and open doors to new all-time highs."
Both New York Fed President John Williams and Fed Governor Christopher Waller mentioned the narrowing window of opportunity for looser monetary policy. Thomas Barkin, the president of the Richmond Fed, stated separately that he is "very encouraged" by the expanding decreases in inflation.
Lowered prices make non-yielding bullion more appealing.
Analysts predicted that the price of gold will rise further in the second half of 2024, according to a quick analysis by LBMA.
June saw the second consecutive month of inflows into globally diversified physically backed gold exchange-traded funds, according to the World Gold Council.
However, "the surge in (gold) price has stifled the physical markets in south and south-east Asia, with buying evaporating and some selling coming back. This is not unusual and the buyers will return once they have acclimatised to the new range," said StoneX analyst Rhona O'Connell in a note.
Citi projects that gold will increase by $2,700–3,000 per ounce and silver by $38 per ounce during the next six to twelve months.
Spot silver increased by 0.7% to $30.51 an ounce, palladium increased by 0.1% to $952.36, while platinum firmed by 0.5% at $999.39.
(Sourec:www.channelnewsasia.com)
Averaging $2,464.13 an ounce as of 1006 GMT, spot gold was up 0.2% from its all-time high of $2,483.60 on Wednesday. Additionally, US gold futures increased by 0.3% to $2,467.30.
"Gold is still in high demand due to rising optimism that US interest rates would drop this year. The desire for gold has increased due to recent dovish remarks made by Fed officials, a generally declining dollar, and low Treasury rates, according to Lukman Otunuga, senior research analyst at FXTM.
Otunuga continued, "More indications of cooling U.S. labour markets and more dovish comments from Fed officials could sustain this upward momentum and open doors to new all-time highs."
Both New York Fed President John Williams and Fed Governor Christopher Waller mentioned the narrowing window of opportunity for looser monetary policy. Thomas Barkin, the president of the Richmond Fed, stated separately that he is "very encouraged" by the expanding decreases in inflation.
Lowered prices make non-yielding bullion more appealing.
Analysts predicted that the price of gold will rise further in the second half of 2024, according to a quick analysis by LBMA.
June saw the second consecutive month of inflows into globally diversified physically backed gold exchange-traded funds, according to the World Gold Council.
However, "the surge in (gold) price has stifled the physical markets in south and south-east Asia, with buying evaporating and some selling coming back. This is not unusual and the buyers will return once they have acclimatised to the new range," said StoneX analyst Rhona O'Connell in a note.
Citi projects that gold will increase by $2,700–3,000 per ounce and silver by $38 per ounce during the next six to twelve months.
Spot silver increased by 0.7% to $30.51 an ounce, palladium increased by 0.1% to $952.36, while platinum firmed by 0.5% at $999.39.
(Sourec:www.channelnewsasia.com)
