Gold Surges Over $2,300 Following Jerome Powell's Remarks

_Photo:AFP

Gold surged to a new all-time high above $2,300 per ounce, driven by expectations of a Federal Reserve interest rate cut and sustained demand from central banks.

The price of gold peaked at $2,304.96 per ounce as investors reacted positively to Fed Chairman Jerome Powell's remarks indicating a potential reduction in borrowing costs later this year.

Silver also remained near a three-year high, benefiting from the prospect of lower interest rates, which typically support non-yielding precious metals.

Gold's rally since mid-February, reaching record highs each day this week, reflects investor optimism about its potential amid the Fed's anticipated policy shift. Geopolitical tensions in regions like the Middle East and Ukraine, coupled with ongoing central bank purchases, have further bolstered gold's appeal.

Central banks continued to increase their gold reserves in February, marking the ninth consecutive month of accumulation, with China leading purchases and India and Kazakhstan also showing strong interest.

However, some market observers are puzzled by gold's surge, especially considering that real US interest rates remain relatively high, which typically acts as a deterrent for gold.

Kyle Rodda, senior market analyst at Capital.Com, expressed skepticism about the sustainability of gold's rally, suggesting a potential correction if the current trend persists without a clear fundamental reason.

Spot gold remained steady around $2,300.25 per ounce, maintaining a seven-day rally that has pushed its 14-day relative-strength index well above 70, indicating overbought conditions.

Silver prices remained stable after hitting $27.3355 per ounce, the highest level since June 2021, while palladium and platinum saw modest gains. The Bloomberg Dollar Spot Index stabilized after a recent decline.

Investors await Friday's non-farm payroll data for insights into the US economy's health and potential implications for monetary policy. Strong employment figures are anticipated, according to a Bloomberg survey.

#breakingnews #worldnews #headlines #topstories #globalUpdate #dxbnewsnetwork #dxbnews #dxbdnn #dxbnewsnetworkdnn #GoldPrice #InterestRates #FederalReserve #CentralBanks #SilverPrice #GeopoliticalTensions #MarketAnalysis #Investing #MonetaryPolicy #EconomicIndicators

During the visit, His Highness toured the exhibition, visiting various local and international pavilions...Read More.

In the first ten months of 2024, Dubai Real Estate Corporation (DREC) and its subsidiary, Wasl Group, saw a 28% rise in revenues compared to 2023...Read More.