Gold prices up

27 May 2024 , 09:01 AM

Although investors reduced their expectations of a U.S. interest rate cut following the Federal Reserve’s most recent meeting, which suggested that a delay in monetary policy easing is likely, gold rose higher on Monday. But it remained close to a two-week low touched in the previous session. Spot gold increased by 0.2% to $2,338.85 an ounce. Prices on Friday fell to $2,325.19, the lowest level since May 9. At $2,340.20, gold futures were up 0.3%.

Earlier last week, gold reached a record high of $2,449.89, but since then, it has lost more than $100.

The minutes of the April 30-May 1 meeting of the U.S. central bank reveal that Fed policymakers expressed a lack of confidence that inflation would reach 2% sooner than expected.

The CME FedWatch Tool indicates that traders’ bets indicated rising scepticism about the likelihood of several rate cuts by the Fed in 2024, with a present pricing in of roughly a 62% chance of a rate decrease by November.

Although gold is seen as an inflation hedge, owning non-yielding gold has a greater opportunity cost as interest rates rise.

Officials and local media reported that an artisanal gold mine collapsed in northern Kenya, leaving at least five people dead and numerous more missing.

Spot silver increased 0.8% to $30.59 an ounce, palladium climbed 1.6% to $979.25, and platinum gained 1.2% to $1,037.90.

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