Gold hits new record amid Fed’s rate cut expectations
EL.KZ Информационно-познавательный портал
Gold hit a new record at over $3,600 per ounce, led by the estimates that the Fed may cut rates by 75 basis points in total by the end of the year, as well as a weakening US dollar, El.kz cites Anadolu.
Gold continues breaking records as its safe-haven feature comes to the fore amid uncertainties, geopolitical risks, and estimates of rate cuts, while the US debt reaches over $37 trillion.
The ounce price of gold is trading at $3,651.96 on Tuesday, up 0.5%. Gold increased by around 5% in a week.
More and more investors opt for gold in anticipation of falling interest rates. Gold rose 9% last month and more than 38% this year, versus 27% last year.
Meanwhile, silver is on a record spree in line with gold -- silver exceeded $40 per ounce for the first time since 2011, reaching $41.36, up 40% since the beginning of the year, overperforming gold.
Some investors view gold as more of a safe haven than US bonds, contributing to its rise, alongside the Fed’s likelihood to cut rates this month.
As labor data in the US showed a cooling labor market, money market estimates point to three rate cuts this year, each in September, October, and December, totaling 75 basis points.
The interest on the US economy’s debt of $37 trillion exceeds the country’s military spending, further prompting investors to look to safe-haven assets.
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