Gold prices in the US surged to record highs on Wednesday, Jul. 17, 2024. The futures price for the yellow metal rose 0.1% to $2,470.20, while the spot price held at $2,466.02 per ounce. Silver, on the other hand, fell 2.1% to $30.73 per ounce, while palladium rallied 0.5% to $963.83.
Also Read: Donald Trump’s Vice President: A Game Changer for Crypto?
According to Tim Waterer, KCM Trade’s chief market analyst, we may witness a surge in purchases for the precious metal in light of the US elections and global geopolitical risks.
City Index senior analyst Matt Simpson stated, “If prices retrace, $2,450 near its previous record high seems like a tempting level for bulls to reload for its next leg higher.“
Why is gold rising?
The latest surge in gold prices could be due to expectations of an interest rate cut in the US. Traders expect a 25 basis point interest rate cut in September.
Also Read: BRICS Currency: Will It Be Worth More Than The US Dollar Or Gold?
According to Waterer, the yellow metal “reached a new high watermark as investors position for the arrival of a lower interest rate environment. The $2,500 (range) is the next immediate target, though if the current momentum can be sustained we could be looking at prices further north from here before year-end.“
Federal reserve chair Jerome Powell said on Monday that inflation in the US seems to be returning to the central bank’s target. His comments could suggest that an interest rate cut in the US is not far off.
Also Read: BRICS: IMF Warns US Economy Presents a Global Recession Risk
The Chinese market’s appetite for gold may have also played a hand in the recent surge. China paused purchasing the yellow metal in May and June, but has since begun gorging on the commodity again.