Gold Holds Above $4000 Barrier Supported by Expectations of US Interest Rate Cuts
Gold managed to maintain its gains above the $4000 per ounce level during trading on Thursday, after surpassing this historic barrier for the first time in the market yesterday, Wednesday. This performance comes amid market optimism regarding a potential cut in US interest rates this year, with signs of easing tensions in the Middle East.
Gold prices stabilized in spot trading at $4037.39 per ounce, after reaching a new record level of $4059.05 during Wednesday's session. On the other hand, December gold futures saw a slight decline of 0.3% to settle at $4056.10.
These positive observations are reinforced by the expectations indicated by the "FedWatch" tool from the CME Group, where markets anticipate an additional interest rate cut of 25 basis points in both October and December, with probabilities of 95% and 83%, respectively.
The yellow metal finds additional support in the current global economic environment, which is witnessing political turmoil in both Japan and France, alongside the ongoing government shutdown in the United States, enhancing the appeal for safe-haven assets.
Gold is also experiencing strong demand from both central banks and individual investors, as its prices have surged by about 54% since the beginning of the year, supported by central bank purchases, increased demand for gold-backed ETFs, a weak dollar, as well as rising trade and geopolitical tensions.
In a related context, silver rose in spot trading by 0.1% to $48.91 per ounce after reaching its all-time high of $49.57 yesterday, Wednesday. Meanwhile, platinum fell by 0.7% to $1650.60, and palladium plummeted by 1% to $1435.25.
