BENGALURU: Gold held steady near its record high on Tuesday as investors awaited U.S. Federal Reserve minutes and Chair Jerome Powell’s speech for indications on how much the central bank will cut rates this year.
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Spot gold edged 0.2 per cent higher to US$2,500.08 per ounce by 0254 GMT, trading slightly below an all-time high of US$2,509.65 hit on Friday. U.S. gold futures rose 0.1 per cent to US$2,537.70.
“Gold prices have been largely steady in the Asian session, seemingly catching a breather as buyers seek to defend its new record high,” said IG market strategist Yeap Jun Rong.
“The broader upward trend for gold remains intact, which could see prices eye for a move towards the US$2,665 level from a technical perspective.”
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Gold prices have rallied more than 20 per cent so far this year on optimism that the Fed will begin cutting interest rates in September, robust central bank buying and safe-haven demand stemming from the Middle East tensions.
Non-yielding bullion’s appeal tends to shine in a low interest rate environment. The Fed is expected to cut rates by 25 basis points at each of the three remaining meetings of 2024, with a slim majority of economists in a Reuters poll dismissing recession concerns.
Trader will closely monitor the minutes of the Fed’s July policy meeting on Wednesday and Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday for further hints.
The U.S. dollar dipped to a seven-month low in the previous session, lending support to dollar-denominated gold.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, jumped to their highest in seven months at 859 tonnes on Monday.
Among other metals, spot silver fell 0.8 per cent to US$29.25 per ounce. Platinum gained 0.6 per cent to US$958.95 and palladium shed 0.8 per cent to US$924.75.