Gold price momentum continues as industry predicts 10% upside
me-metals: Gold closed in on another record high Wednesday with the metal getting a boost from weaker US bond yields and expectations of more rate cuts by major central banks.
According to me-metals cited from mining.com, Spot gold inched 0.3% higher at $2,668.82 per ounce by 12:40 p.m. ET, having touched as high as $2,684.97 earlier. US gold futures gained 0.2% at $2,684.90 per ounce in New York.
Gold’s strong momentum continued as US Treasury yields dropped to the lowest in a week, with the market anticipating another rate cut by the Federal Reserve. Traders currently see about a 96% chance of a 25-basis-point US rate cut in November, according to the CME FedWatch tool.
Over the past year, elevated interest rates have done little to slow gold’s ascent to consecutive record highs, and many investors are now betting that a pivot to looser monetary policy — accompanied by a slowdown in US economic growth — will fuel further gains.
In addition to rate cuts, the other main bullish drivers for gold include risk of fiscal instability, safe haven appeal and geopolitical tensions, all of which have contributed to its status as one of the best-performing commodities in 2024.
Now, bullion is gaining even more support as investors across financial markets reposition their portfolios in response to uncertainty over the outcome of the US presidential race.
“We anticipate uncertainty and volatility to rise until the next US administration is settled,” UBS analysts led by Mark Haefele said in an emailed note to Bloomberg, adding that “gold and oil can be effective portfolio hedges” in such environments.
Earlier, delegates to the London Bullion Market Association’s annual gathering predicted gold prices could even go higher and rise to $2,941 over the next 12 months, about 10% above current levels.
source: mining.com
Related News
thirty Days ago
thirty Days ago
thirty Days ago
thirty Days ago
thirty Days ago
thirty Days ago
thirty Days ago
Top News
Six last month
Two last year
Copper price, stocks are being hammered as Trump tariff, China worries mount
China, Indonesia seal $10 billion in deals focused on green energy and tech
Codelco copper production rises in September, Escondida dips
Suitors circle American Eagle Gold as South32 takes 19.9% stake
US judge narrows investor lawsuit against Rio Tinto over Mongolian mine
Top gold ETF sees largest weekly outflow since 2022 on Trump win
Japan, Peru to agree on cooperation in mineral mining technology
Ahead of Rio Tinto buyout, Arcadium’s profit dips on sliding lithium prices
MinRes halts Bald Hill mine amid lithium price rout
Orano warns of financial problems at Niger uranium plant
Zimbabwe lithium miners want royalties to be linked to prices
Indonesia’s Jan-Oct nickel ore imports surge by 50 times from year ago
Hedge funds slash bullish wagers on gold over Trump election win
Families gather at South African mine shaft where hundreds are feared stuck underground
Soaring demand for copper will help drive mergers, BHP CEO says
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Lithium in nascent rebound, but long-term outlook is bleak
Higher silver supply to reduce global deficit by 4% in 2024
Swapping aluminum for copper will maintain China’s resources, group says
Orano warns of financial problems at Niger uranium plant
Zimbabwe lithium miners want royalties to be linked to prices
Indonesia’s Jan-Oct nickel ore imports surge by 50 times from year ago
Hedge funds slash bullish wagers on gold over Trump election win
Families gather at South African mine shaft where hundreds are feared stuck underground
Soaring demand for copper will help drive mergers, BHP CEO says
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Higher silver supply to reduce global deficit by 4% in 2024
Swapping aluminum for copper will maintain China’s resources, group says