U.S. gold futures also saw a modest gain, rising 0.2 percent to $2,554.90, Reuters news agency reported.
Gold has gained nearly $470 or 22% this year, boosted by geopolitical tensions, uncertainties surrounding the upcoming US presidential election and expectations of possible rate cuts by the Federal Reserve.
“Gold’s bright rally is a reflection of markets anticipating deeper cuts from the Fed,” said OCBC currency strategist Christopher Wong.
In India, gold prices There was also an increase on Wednesday (August 21).
24k gold prices increased by ₹550 to ₹73,200 per 10 grams.
Traders have priced in a rate cut for the Fed’s September meeting, with a 68% chance of a 25 basis point reduction, according to the CME FedWatch tool.
Meanwhile, the dollar has fallen to its lowest point this year, and benchmark 10-year Treasury yields have also declined, making non-yielding bullion more attractive to investors.
Market participants are closely watching the minutes of the Federal Reserve’s July monetary policy meeting, due out later today, and Fed Chair Jerome Powell’s speech on the U.S. economic outlook at Jackson Hole on Friday.
“Given that markets were already expecting sharp cuts to some extent, the bar is high for Powell to outperform markets. A bit of a reality check may suffice and we do not rule out a pullback in gold prices in the near term,” Wong said, according to a Reuters report.
The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a 0.20% decline in its holdings from a seven-month high on Tuesday.
“While prices appear to be moving lower, bears need to tread carefully as I suspect there is strong support around previous records… and dip buyers will likely be tempted back to the table,” City Index senior analyst Matt Simpson was quoted as saying by Reuters.
Investment Considerations
Given gold’s strong recent performance and current market conditions, it may be a prudent time to consider adding gold to your investment portfolio.
The precious metal has shown resilience amid economic uncertainty and geopolitical tensions.
While there is the potential for short-term price fluctuations, especially with upcoming Federal Reserve decisions and market reactions, gold remains a valuable hedge against inflation and currency fluctuations.
Investors should carefully evaluate their risk tolerance and investment objectives before diving into gold.
A balanced approach, such as diversifying investments to include gold while maintaining exposure to other assets, can help manage risk and capitalize on gold’s long-term growth potential.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.