Gold set for fourth weekly rise on US rate-cut bets

GOLD prices slipped on Friday (Jul 19), but were on track for a fourth straight weekly gain as expectations that the Federal Reserve was likely to cut US interest rates in September lifted appeal for non-yielding bullion.

Spot gold was down 0.4 per cent at US$2,434.38 per ounce, as at 0047 GMT, after scaling an all-time high of US$2,483.60 on Wednesday. Prices were up 1 per cent for the week.

US gold futures fell 0.8 per cent to US$2,435.70.

Markets see a 98 per cent chance of a US rate cut in September, according to the CME FedWatch Tool.

Zero-yield bullion’s appeal tends to shine in a low-interest rate environment.

Earlier this week, Fed chair Jerome Powell said recent inflation readings “add somewhat to confidence” that the pace of price increases is returning to the central bank’s target in a sustainable fashion, suggesting a turn to rate cuts may not be far off.

While, Fed Bank of San Francisco president Mary Daly said she is looking for more confidence that inflation is moving back to the Fed’s 2 per cent target.

Data on Thursday showed the number of Americans filing new applications for unemployment benefits increased more than expected last week, but that did not signal a material shift in the labour market amid temporary automobile plant closures and disruptions from Hurricane Beryl.

Swiss June gold exports fell to the lowest levels since April 2022 owing to reduced shipments to China and India, customs data showed.

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Gold soars to record peak as US rate-cut bets burnish appeal

Among wealthy investors under the age of 43, 45 per cent own gold as a physical asset, and another 45 per cent are interested in holding it, according to a recent study by Bank of America Private Bank.

Spot silver fell 1.4 per cent to US$29.65 per ounce, platinum eased 0.6 per cent at US$961.80 and palladium dropped 0.3 per cent to US$927.20. REUTERS