Spot gold was 0.2% higher at $2,464.13 per ounce, having reached an all-time high of $2,483.60 on Wednesday
Gold prices firmed on Thursday, staying near a record high reached in the previous session as traders ramped up bets of a start to interest-rate cut cycle by the U.S. Fed, constraining gains in the dollar and Treasury yields.
Spot gold was 0.2% higher at $2,464.13 per ounce as of 1006 GMT, having reached an all-time high of $2,483.60 on Wednesday. U.S. gold futures also jumped 0.3% to $2,467.30.
Gold continues to shine on growing speculation around lower U.S. interest rates this year. Recent dovish comments by Fed officials, complemented with a widely weaker dollar and subdued Treasury yields have sweetened appetite for the precious metal, according to FXTM senior research analyst Lukman Otunuga.
Further signs of the U.S. labour markets cooling and more dovish remarks by Fed officials could keep this upside momentum alive, opening doors to new all-time highs, Otunuga said.
Fed Governor Christopher Waller and New York Fed President John Williams both noted the shortening horizon toward looser monetary policy. Separately, Richmond Fed President Thomas Barkin said he is “very encouraged” on broadening declines in inflation.
Gold price will continue to trade higher during the second half of 2024, analysts stated in a review conducted by LBMA.
According to the World Gold Council, global physically backed gold exchange traded funds (ETFs) saw the second straight month of inflows in June.
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, StoneX analyst Rhona O’Connell said in a note.
Over the next six to 12 months, Citi expects gold to rise $2,700-$3,000 per ounce and silver to jump $38 per ounce.
