Gold prices rose to their highest levels ever, today, Monday, as the slowdown in inflation in the United States reinforced expectations that the Federal Reserve (the US central bank) may implement the first cut in interest rates soon, while silver rose to its highest levels in more than 11 years.
Gold rose in spot transactions 1.4% to $2,450.06 per ounce during trading before losing some of its gains and recording $2,440.53 at the time of writing. US gold futures for June delivery rose 1.03% to $2,442.40.
Data last week showed signs of slowing inflation in the United States and investors now expect a 65% chance of a cut in US interest rates by September.
The dollar index remained weak, which makes gold priced in the US currency more attractive to buyers than holders of other currencies.
Federal meeting
Investors’ attention is turning to the minutes of the latest Reserve Board meeting scheduled to be issued next Wednesday, along with the comments of a large number of Board spokesmen.
As for other precious metals:
- Silver rose in spot transactions 1.4% to $31.93 after hitting its highest level in more than 11 years at $32.50.
“The relative cheapness of silver compared to gold and the strength of the fundamentals associated with it increase investor interest,” analysts at ANZ wrote in a note.
- Platinum rose 0.3% to $1,084.2, after reaching its highest levels since May 12, 2023.
- Palladium increased 0.3% to $1,011.64.
