Gold hits new record high | Economy

Gold rose to a fresh record high, surpassing its peak in May, after comments from Federal Reserve Chairman Jerome Powell strengthened the case for a September interest rate cut, while investors awaited further U.S. economic data for fresh clues on monetary policy.

The price of gold rose to $2,462.54 per ounce, surpassing the record level recorded last May, before falling to $2,460 at the time of writing.

interest rate cut

“Powell continued to lay the groundwork for the next rate cut. Markets are now fully pricing in a September rate cut, which could keep gold sentiment well supported in the run-up to the cut,” IG Markets Markets strategist Yip Jun Rong was quoted as saying by Reuters.

Jerome Powell said Monday that three U.S. inflation readings in the second quarter of this year “increase somewhat the confidence” that the pace of price increases is returning to the Fed’s target in a sustainable way, comments that suggest a rate cut may not be far off.

Lower interest rates usually boost the appeal of non-yielding gold.

U.S. retail sales were steady in June and the underlying trend was strong, which could boost second-quarter economic growth estimates.

Excluding automobiles, gasoline, building materials and food-related services, retail sales rose 0.9% last month after rising 0.4% in May.

As for other precious metals:

• Spot silver rose 0.74% to $31.20 an ounce at the time of writing.
• Platinum rose 0.2% to $996.70.
• Palladium rose 0.91% to $958.9.