Spot gold rose 1.4% to $2,113.28 an ounce, hitting a record high of $2,135.40 and U.S. gold futures rose about 1.5% to $2,126.3
Gold prices hit a three-month high on Monday on rising expectations for a June interest rate cut by the Federal Reserve.
Spot gold rose 1.4% to $2,113.28 an ounce as of 2:10 p.m. ET, hitting a record high of $2,135.40. This was the highest price since December 4th. U.S. gold futures rose about 1.5% to $2,126.3.
Gold rose about $50 last week as U.S. manufacturing and construction spending subdued and price pressures eased.
Gold could easily push above the record highs, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
Powell speaks two times this week and he could come out and be a bit more dovish. We could see a miss on the U.S. jobs data on Friday, all factors that will help gold, Streible added.
According to the CME Fed Watch Tool, the market is pricing in a 66% chance that Fed will cut rates this June.
If inflation numbers remain tame, gold’s going to continue to trend higher, said Jim Wyckoff, senior analyst at Kitco Metals.
Gold has struggled as high interest rates in the US aimed at curbing inflation have pushed up yields on competing assets such as bonds, pushing up the dollar and making it more expensive to buy in foreign currencies.
Heightened geopolitical tensions around the world have reduced the short-selling appetite, basically all strengthening gold’s current buy-on-dips credentials, stated Ole Hansen, Saxo Bank’s head of commodity strategy.
London’s gold price index hit an all-time high of $2,098.05 per troy ounce in Monday afternoon’s auction, surpassing the all-time high of $2,078.40 set on December 28, according to the London Gold Market Association.
