Gold steadies above $2 400 as markets boost bets on Fed pivot
Gold steadied after surging beyond $2 400/oz in the previous session, as cooler-than-expected US inflation boosted bets the Federal Reserve will start cutting rates soon.
The precious metal jumped 1.9% on Thursday, the biggest gain since March, after the US reported the slowest growth in core consumer prices — which exclude energy and food — since 2021.
The data prompted traders to fully price in a September rate cut for the first time in months, with at least two quarter-point moves now expected in 2024. Lower borrowing costs typically benefit bullion, which doesn’t pay interest.
Gold, now closing in on an all-time high of $2 450.07 reached in May, has rallied 17% this year despite headwinds including high interest rates and sticky inflation. Strong buying by central banks, haven demand amid geopolitical tensions and purchases by Chinese consumers have all acted as supports for bullion.
With markets now viewing the prospect of a September Fed pivot as highly likely, investors were keen to boost their exposure to gold, ANZ Group Holdings analysts Brian Martin and Daniel Hynes said in a note.
Gold was 0.1% lower to $2 412.47 as of 8:53 a.m. in Singapore. The Bloomberg Dollar Spot Index was little changed after sinking 0.5% in the previous session. Silver slipped, following a 2.1% gain on Thursday. Palladium fell and platinum was steady.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
