By NewsBlogger One sentence summary – Gold prices have reached record highs in Asian trade due to Federal Reserve Chair Jerome Powell’s comments on potential interest rate cuts, boosting optimism among traders and increasing demand for non-yielding assets like gold.
At a glance
- Gold prices surged to record highs in Asian trade, with spot gold reaching $2,161.19 an ounce.
- Fueled by Federal Reserve Chair Jerome Powell’s comments on potential interest rate cut in 2024.
- Minneapolis Fed President Neel Kashkari predicts no more than two rate cuts this year.
- Outlook for gold remains positive with expectations of a rate-cut decision in June meeting.
- Chinese imports of copper grew by 2.6% year-on-year in the Jan-Feb period.
The details
Gold prices have surged to record highs in Asian trade, with spot gold reaching $2,161.19 an ounce and gold futures hitting a peak of $2,168.10 an ounce.
This increase was fueled by Federal Reserve Chair Jerome Powell’s comments indicating a potential interest rate cut in 2024, which has boosted optimism among traders.
Powell’s remarks have also bolstered demand for non-yielding assets like gold.
Rate Cut Speculation
Minneapolis Fed President Neel Kashkari does not foresee more than two rate cuts this year, and Powell did not provide clear signals on the timing and scale of potential rate cuts.
The dollar experienced a sharp decline in overnight trading but partially recovered during the Asian session.
Gold prices were trading below intraday highs by 23:33 ET, while other precious metals, such as platinum and silver, saw more muted movements.
Positive Outlook for Gold
The outlook for gold remains positive, with expectations of a rate-cut decision by the Federal Reserve in the June monetary policy meeting further enhancing the appeal of the precious metal.
Improved safe-haven demand due to uncertain global financial conditions and a decline in US Treasury yields have also contributed to the strong performance of gold.
In addition, copper futures rose 0.3% to $3.8817 a pound, supported by stronger-than-expected trade data from China.
Chinese imports of copper grew by 2.6% year-on-year in the Jan-Feb period.
Overall, the recent surge in gold prices and the broader trends in the precious metal market highlight the impact of central bank policies, economic data, and global market conditions on commodity prices.
Investors will be closely watching key indicators, such as the US Nonfarm Payrolls data for February, for further insights into the economic landscape.
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| uk.investing.com |
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| – Gold prices rose to a record high in Asian trade – Federal Reserve Chair Jerome Powell commented that the central bank will cut interest rates in 2024 – Traders are optimistic about U.S. interest rate cuts – Spot gold jumped more than 0.4% to a record high of $2,161.19 an ounce – Gold futures expiring in April hit a peak of $2,168.10 an ounce – Strong surge in investor demand for gold – Powell’s comments bode well for non-yielding assets like gold – Powell did not provide clear cues on timing and scale of rate cuts – Minneapolis Fed President Neel Kashkari does not see more than two rate cuts this year – Dollar fell sharply in overnight trade but recovered mildly during the Asian session – Gold prices were trading below intraday highs by 23:33 ET – Other precious metals were more muted in Asian trade – Platinum futures steadied around $913.80 an ounce – Silver futures fell slightly to $24.477 an ounce – Focus on key nonfarm payrolls data due on Friday for more cues on the labor market – Copper futures rose 0.3% to $3.8817 a pound – Stronger-than-expected trade data from China supporting copper prices – Chinese imports of copper grew 2.6% year-on-year in the Jan-Feb period |
| fxstreet.com |
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| – Gold price (XAU/USD) has extended its winning streak for the seventh trading session on Thursday – |
| The precious metal has refreshed all-time highs near $2,160 amid multiple tailwinds – Expectations for a rate-cut decision by the Federal Reserve (Fed) in the June monetary policy meeting have strengthened the appeal for Gold – Improved safe-haven demand due to uncertain global financial conditions has also strengthened demand for Gold – A sharp decline in US Treasury yields has reduced the opportunity cost of holding investments in non-yielding assets, such as Gold – Yields on interest-bearing government bonds slumped as Fed Chair Jerome Powell said rate cuts would be appropriate sometime this year – The US Dollar Index (DXY) has dropped to a monthly low near 103.20 amid uncertainty over the United States economic outlook – The US Dollar will be guided by the US Nonfarm Payrolls (NFP) data for February – Gold price has printed a fresh all-time high at $2,161.60 after breaking above horizontal resistance – The Gold price is trading in uncharted territory and is expected to remain broadly bullish – A corrective move in the asset cannot be ruled out as momentum oscillators have reached overbought territory – Major support levels for Gold include December 4 high near $2,145 and December 28 high at $2,088 – The 14-period Relative Strength Index (RSI) has reached 82.00, the highest level in the last two years, indicating that fresh bids should not be considered |
| fxstreet.com |
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| – Gold prices rallied sharply on Tuesday, reaching an all-time high of $2,141.59 – Speculation that the US Federal Reserve could begin to ease policy increased following reports of an economic slowdown in the services sector – The XAU/USD trades at $2,133.50, up more than 2.40% – S&P Global reported that business activity is slowing down, with February’s data softer than last month – The S&P Global Composite Index exceeded forecasts – The Institute for Supply Management (ISM) was weaker than expected, and the US Department of Commerce revealed that Factory Orders plunged – XAU/USD edged higher from close to $2,120 after the data – US Treasury yields along the short and long end of the curve plummeted – The 10-year benchmark note rate was at 4.135%, down eight basis points – Gold has retreated from the all-time high seen at $2,141.59, which could open the door for a pullback – XAU/USD’s first support would be the $2,100.00 mark, followed by the December 28 high at $2,088.48 and the February 1 high at $2,065.60 – XAU/USD’s next resistance would be $2,150.00, followed by the $2,200.00 mark |
