Gold Hits All-Time High, Gains 22% in 2024
Gold reached $2,520 per ounce on Tuesday in the global commodities market, a new record high, as bets of less-restrictive monetary policy by major central banks magnified the support for safe-haven assets amid lingering geopolitical concerns.
Signs of continued disinflation in the US, lastly evidenced by headline and core price gauges slowing more than expected in July, raised expectations that the Fed is due to start lowering rates and attend to a slowing labor market.
Markets currently favor 100bps in rate cuts by the US central bank in their three remaining decisions this year. Gold started hovering near record highs after it topped $2,500/oz for the first time on Friday.
The move higher came after disappointing US housing data reinforced expectations of rate cuts from the US Fed. Gold prices are up 22% so far this year amid geopolitical uncertainties, expectations of interest rate cuts from the Fed and strong buying appetite from central banks.
Looking ahead, we expect gold to stay near record highs on expectations that the US Fed is getting closer to an interest rate cut.
“We believe that gold’s focus will remain firmly on the scope and timing of the Fed’s likely move to cut rates, with Jackson Hole later this week potentially providing some further clarity on the path the Fed may take”, ING said in a note. #Gold Hits All-Time High, Gains 22% in 2024
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