Gold rose to a record as the second quarter kicked off, extending a rally that’s been driven the Federal Reserve edging closer to rate cuts and deepening geopolitical tensions.
Bullion jumped as much as 0.8% to $2 247.44 an ounce early on Monday, after setting a series of records in recent sessions. Data on Friday — when many markets were closed — showed that the Fed’s preferred gauge of underlying inflation cooled in February. That adds to the case that policymakers may feel comfortable reducing borrowing cost this year, although the US central bank has been striking a cautious tone.
Gold has been among the better-performing major commodities so far in 2024, logging a gain of more than 8% in the first quarter. In addition to the prospect of monetary easing by leading central banks, persistent tensions in the Middle East and Ukraine have bolstered the precious metal’s appeal as a haven asset, while buying by central banks and Chinese consumers has also aided prices.
Spot gold rose 0.7% to $2 245.60 an ounce as of 7:59 a.m. in Singapore, after climbing 3% last week. The Bloomberg Dollar Spot Index dipped 0.1%, while silver, platinum and palladium all traded higher.
Gold’s positive prospects have been endorsed by a slew of leading banks. Among them, JPMorgan Chase & Co. said last month that the metal was its No. 1 pick in commodities markets, and the price may reach $2 500 an ounce this year.