Gold prices reached a historic high on Wednesday following statements from Federal Reserve officials that bolstered expectations of a forthcoming US interest rate reduction in September.
At 0046 GMT, spot gold edged up 0.1% to $2,470.89 per ounce after hitting an unprecedented peak of $2,473.18 earlier in the session. US gold futures also saw an increase of 0.3% to $2,473.70.
According to Reuters, CME’s FedWatch Tool indicates that markets have fully factored in a rate cut of at least 25 basis points during the Fed’s September meeting.
Federal Reserve Chair Jerome Powell remarked on Monday that recent inflation data “add somewhat to confidence” that inflationary pressures are aligning with the Fed’s target in a sustainable manner, hinting at potential imminent rate cuts.
The International Monetary Fund (IMF) reported on Tuesday that the global economy is anticipated to experience moderate growth over the next two years. This outlook considers subdued activity in the United States, stabilization in Europe, and strengthened consumption and exports in China. However, risks to this trajectory remain significant.
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