April 8 (Reuters) – Gold prices soared to unprecedented heights on Monday, marking a seventh consecutive session of record-breaking gains. This surge was propelled by a combination of central bank acquisitions and escalating geopolitical tensions, with the appeal of bullion remaining resilient despite robust economic indicators.
As of 13:45 p.m. ET (1745 GMT), spot gold strengthened by 0.3% to $2,336.39 per ounce after reaching an all-time high of $2,353.79 earlier in the trading session. Meanwhile, U.S. gold futures settled 0.2% higher at $2,351.
China disclosed an addition of 160,000 troy ounces of gold to its reserves in March, echoing similar moves by Turkey, India, Kazakhstan, and several Eastern European nations throughout the year.
Bart Melek, Head of Commodity Strategies at TD Securities, noted, “The market is pricing rate cuts by June despite strong economic data. But, if we continue to see strong data, which indicates that Federal Reserve is in no hurry to cut rates, then gold will not be able to sustain the gains.” He emphasized that central bank purchases and geopolitical tensions are further bolstering gold’s ascent.
Market sentiment suggests a 52% probability of a first 25 basis point cut in U.S. rates by June, according to CME Group data. However, recent statistics indicating an exceptional surge in U.S. job growth in March have raised doubts regarding the timing of such rate adjustments.
Lower interest rates diminish the opportunity cost of holding bullion, consequently driving its demand. COMEX gold speculators increased their net long positions by 20,493 contracts to 178,213 in the week ended April 2, data revealed on Friday.
Spot silver also experienced an upsurge, rising by 1% to $27.76, marking its highest level in nearly three years. Indian officials informed Reuters that silver imports reached a record peak in February, primarily due to reduced duties that encouraged significant purchases from the United Arab Emirates.
Furthermore, platinum surged by 3.9% to $963.60, while palladium strengthened by 3.8% to $1,040.82. Daniel Pavilonis, Senior Market Strategist at RJO Futures, attributed this increase to the anticipation of platinum group metals catching up with gold. He remarked, “The precious metals sector as a whole is starting to benefit from gold being so expensive now.”
