Gold prices were trading below record high levels on Wednesday after a rally fuelled by Western fund inflows and U.S. rate-cut optimism, as investors braced for minutes of the Federal Reserve’s latest meeting for clarity on the depth of cuts.
Spot gold was up 0.1% at $2,517.08 per ounce, as of 0427 GMT, after hitting an all-time high of $2,531.60 on Tuesday. U.S. gold futures rose 0.2% to $2,554.90.
Gold has gained nearly $470 or 22% so far this year, with geopolitical tensions and uncertainty created by the upcoming U.S. Presidential elections and prospective rate cuts set to help power the precious metal to even loftier levels.
Traders have fully priced a rate cut at the Fed’s September meeting, with a 68% chance of a 25 basis points cut, according to CME FedWatch tool.
The dollar slipped to its lowest this year, while benchmark 10-year Treasury yields also sank, making non-yielding bullion more attractive for investors.
Traders now await minutes of the Fed’s July policy meeting due later in the day, and Fed Chair Jerome Powell’s speech on the U.S. economic outlook this Friday at Jackson Hole.
Spot silver edged 0.3% higher to $29.52 per ounce, platinum gained 0.6% to $951.55 and palladium fell 0.1% to $924.60.
Source: Reuters
