“Gold hit a fresh all-time high, supported by mounting expectations of the US Fed cutting the rates through the rest of the year. A weak US jobs report last Friday also led the market to price in three rate cuts this year, including a 25 bps cut next week,” said Jigar Trivedi of Reliance Securities.
Investors are now awaiting the US producer price index and consumer price index prints, due later this week, which could provide further guidance on the Fed’s next steps for the interest rate cycle, he added.
Meanwhile, the dollar continued its southward-ho with the dollar index, which gauges the greenback’s strength against a basket of six currencies, trading at 97.33, lower by 0.12%.
In the overseas markets, Comex gold futures for December delivery rose to hit an all-time high of $3,698.02/ounce. Also, spot gold appreciated to hit a record high of $3,658.38/ounce, which is 28.35 grams.
“Gold has reached new all-time highs above $3,695/ounce to start the week on a strong bullish note. The action builds on last week’s surge as investors become more confident that the Fed would lower interest rates at its September monetary policy meeting, a move that markets now regard as almost certain after a run of poor US job market data,” said Renisha Chainani of Augmont.
Globally, the exchange-traded funds have added 53 tonnes of gold in August, worth roughly $5.5 billion. The assets under management by ETFs closed at a month-end high once more, and are currently only 6% below the peak that was attained during the epidemic, Chainani said.
