Gold steadied just below a record as the Federal Reserve signaled a shift toward an interest-rate cut in September, and elevated tensions in the Middle East supported haven demand.
Bullion which rose more than 5% in July was little changed above $2,445 an ounce after surging on Wednesday. While the Fed left rates unchanged at a midweek meeting, Chair Jerome Powell said the bank could cut borrowing costs next month, triggering a slump in Treasury yields and the dollar.
In the Middle East, Iran’s leader Ayatollah Ali Khamenei has ordered a direct strike on Israel, the New York Times reported. That comes after Iran said that Israel had assassinated the political leader of Hamas in Tehran, shortly after killing a senior Hezbollah official in Beirut.
Gold is this year’s best performing major commodity, setting a series of records as it rallied by a almost a fifth. The surge has been driven by a host of factors, including consistent central-bank buying and strong demand for physical bars from Asian investors. Further support has come from increasing expectations for lower US rates, as well as spikes in geopolitical tensions.
After the Fed meeting, investors will turn their attention to upcoming data releases, including initial jobless claims on Thursday and non-farm payrolls the day after. In their statement, policymakers altered their language to signal that they are increasingly worried a weakening of the labor market.
Spot gold was steady at $2,446.53 at 1:30 p.m. in Singapore, after jumping 1.5% on Wednesday. It peaked last month at $2,483.73. The Bloomberg Dollar Spot Index was flat, after a 0.6% decline. Silver eased below $29 an ounce, while platinum and palladium fell.
Source : Bloomberg
