Online Reporter
Gold hit a fresh all-time high, as the prospect of US interest-rate cuts boosted the metal’s appeal and traders sought safety following a recent selloff in equity and bond markets.
Bullion climbed as much as 0,7 percent to top US$3 556 an ounce, exceeding Tuesday’s peak. Prices have advanced about 5 percent over the past seven sessions, underpinned by increased haven demand amid renewed worries over the Federal Reserve’s future and concerns about sovereign debt levels in developed-world countries.
Gold has risen more than a third this year, making it one of the best-performing major commodities. The latest run has been propelled by expectations that the US central bank will lower rates this month, after Fed Chair Jerome Powell cautiously opened the door to a cut.
A key US jobs report this Friday is likely to show signs of an increasingly subdued labour market, supporting the case for rate cuts. Lower interest-rate environments tend to benefit non-yielding gold.
Both gold and silver have more than doubled over the past three years, with mounting risks in geopolitics, the economy and global trade driving demand for the time-honoured haven assets. An escalation in President Donald Trump’s attacks against the Fed this year has increased worries over the central bank’s independence being under threat.
Markets are now waiting for a landmark ruling on whether Trump has legitimate grounds to remove Fed Governor Lisa Cook from the central bank. If deemed legal, the move would allow the president to replace her with a dovish-leaning official.
Investors are also anticipating an announcement from the White House over the selection of the next Fed Chair when Powell steps down from his role in May. Treasury Secretary Scott Bessent will start interviewing candidates on Friday, the Wall Street Journal reported. — Bloomberg
