Gold Soars on Fed Rate Cut Hints

1 Aug 2024 , 10:11 AM

Gold prices rose to a two-week high on Thursday as Federal Reserve Chair Jerome Powell signalled that interest rates could be cut as early as September.

Spot gold was unchanged at $2,448.38 per ounce, having reached its highest level since July 18 earlier in the day. Prices were just approximately $35 below the record high of $2483.60 set on July 17.

U.S. gold futures rose 0.8% to $2,492.50.

Fed Chair Jerome Powell said on Wednesday that if the US economy continues on its current path, rates might be cut as soon as September, bringing the central bank near the end of a more than two-year struggle against inflation but right in the heart of the country’s presidential election campaign.

Zero-yield gold thrives in a low-interest rate economy.

The market’s attention turns to Friday’s US payrolls report.

Spot silver slipped 0.3% to $28.94 per ounce, while platinum fell 0.3% to $973.65 and palladium was unchanged at $925.16.

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