ALBAWABA - Today's historic peak in gold prices of $2,583.30 per ounce was fueled by rumors that the Federal Reserve may cut interest rates. Additionally, Palladium is expected to have its best week in nine months.
This afternoon, the price of gold spot surged by 1%, while the price of U.S. gold futures gained by 0.7% to $2,598.10. For investors holding foreign currencies, gold became less costly when the dollar index dropped by 0.4%.
The CME Group's FedWatch Tool indicates a 41% chance of a 50 basis point rate drop by the Fed at its next meeting on September 18, indicating a change in market expectations. In response to news from The Wall Street Journal and Financial Times suggesting that a more substantial rate drop may still be taken into consideration, this is an increase from the earlier anticipation of 28%.
Gold prices continue to increase
According to Reuters, gold prices increased by 1.9%, reaching 2,567.93 an ounce. The rise followed the release of the latest inflation data in the United States and was supported by speculation about potential interest rate cuts by the Federal Reserve.
MSCI's broadest index of Asia-Pacific shares outside Japan recorded a boost of nearly 0.53% while the US dollar fell against the yen yesterday. Meanwhile gold reached a new global high record as investors anticipate interest rate cuts by the Federal Reserve next week.
