Gram gold Hits Record High as Fed Rate Cut Bets Surge
News Center
Date of Creation: September 5, 2024 08:19
ISTANBUL – Gram gold surged to a new record high today, breaking 4723 TL, as mounting expectations of a US Federal Reserve interest rate cut in September fuel investor demand. Spot gold is also trading near record levels,poised to close out its strongest week in three months.
Spot gold rose 0.4 percent to $3,559.88 per ounce, nearing its all-time high of $3,578.50 reached on Wednesday. The precious metal has gained 3.25 percent this week, 5.8 percent in the last month, and a remarkable 35.6 percent year-to-date.
The rally follows the release of yesterday’s US non-agricultural employment report, which indicated a softening labor market. Data revealed increasing unemployment applications and a weaker-than-expected rise in special employment, bolstering expectations for monetary policy easing.
Fed officials, including Vice President Christopher Waller, have signaled support for loosening monetary policy. According to CME Fedwatch, there is now nearly a 100 percent probability of a 25-basis point rate cut at the Fed’s September 17 meeting.
“the data clearly suggests the labor market is cooling, increasing the likelihood of the Fed moving to lower rates next month,” said a market analyst.
Other precious metals also benefited from the risk-on sentiment. Silver increased by 0.4 percent to $40.85, marking its third consecutive week of gains. Platinum rose 1.3 percent to $1,385.01, while palladium gained 0.3 percent to $1,129.
Traders remain cautious ahead of upcoming payroll data, which will provide further insight into the US labor market and possibly influence future interest rate decisions. Investors are closely monitoring these developments as they navigate the evolving economic landscape.