Gold prices surged to a historic high as investors awaited key U.S. economic data that could indicate whether last week’s 50-basis-point rate cut by the Federal Reserve marks the beginning of a series of significant reductions. The precious metal rose by 0.2%, reaching $2,625.89 an ounce, surpassing the previous record set on Friday. Market participants are closely analyzing the outlook for interest rates ahead of critical reports, including the U.S. personal consumption expenditures (PCE) index and jobless claims, scheduled for release later this week.
Fed Governor Christopher Waller hinted on Friday that he is inclined to support quarter-point rate cuts at the next two Federal Reserve meetings in November and December, contingent upon his economic outlook. However, he also noted that a half-percentage-point cut could be considered if the job market shows signs of weakening.
In addition to economic factors, gold traders are keeping a close watch on rising tensions in the Middle East, particularly the conflict between Hezbollah and Israel, which could escalate into a broader regional crisis. Such developments typically enhance gold’s appeal as a safe-haven asset.
As of 10:44 a.m. in Singapore, spot gold traded at $2,624.44 an ounce, reflecting a 1.7% increase from the previous week. The Bloomberg Dollar Spot Index remained stable during this period. Meanwhile, silver prices dipped slightly, while palladium and platinum also experienced declines.
Related topics:
