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Gold set for weekly gain on Fed rate cut boost

Gold stuck around near record high levels on Friday and was on track for a weekly gain after the Federal Reserve's recent supersized rate of interest decrease and on indications that additional cuts were on the horizon.

Area gold rose 0.2% to $2,592.17 per ounce, as of 0309 GMT, up about 0.6% for the week up until now.

Bullion increased to a record high of $2,599.92 on Wednesday after the Fed began reducing financial policy with a. half-percentage-point rate cut. The Fed also forecasted a further. half-point decrease by year-end, a complete point next year, and an. extra half-point in 2026.

U.S. gold futures edged up 0.1% to $2,617.30.

Present patterns are extremely favorable for gold, and if these. favourable market conditions continue, costs could reach. between $2,600 and $2,800 over the next 12 months, said Kyle. Rodda, a financial market analyst at Capital.com.

Lower U.S. interest rates and geopolitical unpredictability. increase the appeal of holding bullion.

In the Middle East, Israeli warplanes performed late on. Thursday their most intense strikes on southern Lebanon in. almost a year of war, heightening the conflict between Israel. and Lebanese armed group Hezbollah.

Gold prices are expected to be well supported in the coming. months due to a weaker U.S. dollar and lower bond yields, as. well as against a backdrop of elevated geopolitical stress,. BMI stated in a note.

In other places, China, the world's largest gold consumer,. refrained from gold imports from Switzerland in August, for the. first time given that January 2021, customizeds information from the world's. biggest bullion refining and transit center revealed on Thursday.

Spot silver increased almost 1% to $31.09 per ounce and. palladium got 0.6% to $1,086.75.

Platinum was stable at $988.30 and was down about. 0.9% so far today.

(source: Reuters)