- Spot gold prices rose to an all-time high, surpassing $2,500 an ounce, supported by hopes that the US Federal Reserve will soon cut interest rates.
- Spot gold rose 2.1% to $2,508.82 an ounce, and bullion topped $2,500 an ounce on Friday, surpassing its previous record high set last month, as disappointing U.S. housing data bolstered expectations for faster and deeper Federal Reserve rate cuts, Bloomberg reported.
- Low borrowing costs are generally considered positive for non-interest bearing gold.
- The precious metal has risen more than $201T this year, amid growing optimism about monetary easing and large purchases by central banks, and has seen increased demand as a safe-haven asset due to rising geopolitical risks, including tensions in the Middle East and Russia's conflict with Ukraine.
- The housing data is “another indicator that a recession is coming,” said Bob Haberkorn, chief market strategist at RJO Futures, and the Fed will cut rates “more aggressively than previously expected.”
