Gold Hits Record High Above $2,550 Amid US Inflation and Rate Cut Expectations

According to BlockBeats, on September 12, spot gold continued to rise, setting a new record high above $2,550, after U.S. inflation data once again exceeded expectations and the number of initial jobless claims rose, confirming people’s bets that the Federal Reserve will cut interest rates next week. Ole Hansen, head of commodity strategy at Saxo Bank, said: “A series of factors such as the ECB’s rate cut, a small increase in initial jobless claims and PPI are enough to push gold prices to a record high.” After the August CPI rebound was announced on Wednesday, swap dealers consolidated their bets that the Federal Reserve will cut interest rates by 25 basis points at next week’s interest rate meeting. Hansen added that for the gold market, the beginning of a rate cut cycle may add support, regardless of the extent of the cut. Gold prices have risen by more than a fifth this year, and growing expectations that the Federal Reserve will soon start a rate cut cycle have supported the recent strength of gold prices. Strong buying by central banks and strong demand in the over-the-counter market also drove gold’s rise. (Jinshi)

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