Gold prices steadied in early Asian trade on Thursday, hovering near record highs, amid expectations of another big U.S. interest rate cut this year, although gains were limited ahead of comments from key Federal Reserve policymakers later in the day.
price movement
Spot gold was up 0.2 percent at $2,661.25 an ounce by 0334 GMT. It hit a record high of $2,670.43 on Wednesday. U.S. gold futures were flat at $2,684.50.
“The slight recovery in the dollar has kept gold prices in check, but with markets still anticipating more aggressive Fed cuts between now and the end of the year, the odds are looking bullish for gold,” said Tim Waterer, chief market analyst at KCM Trade.
The yellow metal has jumped about 29 percent so far in 2024 and has hit record highs several times this year, largely due to easing monetary policy by major central banks and geopolitical concerns.
Low interest rates reduce the opportunity cost of holding gold and it is considered a safe asset during economic and political turmoil.
Last Wednesday, the Fed cut interest rates by 50 basis points, and according to the CME FedWatch tool, traders see a 62 percent chance of an additional half-point cut in November.
Federal Reserve Chairman Jerome Powell will deliver opening remarks at Thursday's conference, while New York Fed President John Williams and Federal Reserve Vice Chairman for Supervision Michael Barr are also scheduled to speak.
Traders are also awaiting US jobless claims data on Thursday and core personal consumption expenditures, the Fed's preferred inflation gauge, on Friday for further clues on the path of interest rates.
As for other precious metals, silver in spot transactions reached $31.85 per ounce, platinum rose 0.8 percent to $995.90 and palladium rose 1.2 percent to $1048.75 per ounce.
