- Gold prices rose globally on Tuesday, as comments by US Federal Reserve Chairman Jerome Powell strengthened the case for a September interest rate cut, while investors await more US economic data for further indications on monetary policy.
- Spot gold rose 0.2% to $2,425.69 an ounce, while US futures rose 0.1% to $2,431.80 an ounce.
- On Monday, gold prices reached their highest level since May 20, when the metal rose to a record high of $2,449.89 per ounce.
- “Powell continued to lay the groundwork for the next rate cut, and markets are now fully pricing in a September rate cut, which could keep gold sentiment well supported in the run-up to the cut,” said IG market strategist Ye Jun Rong.
- Powell said Monday that the three U.S. inflation readings in the second quarter of this year “increase somewhat the confidence” that the pace of price increases is returning to the Fed’s target in a sustainable way, comments that suggest an interest rate cut may not be far off.
- When interest rates fall, non-yielding gold usually becomes more attractive.
- Investors are awaiting US retail sales data due later today, and comments from other Federal Reserve officials for further clues.
- Among other precious metals, spot silver fell 0.8% to $30.75 an ounce, platinum fell 0.3% to $992.26 an ounce, while palladium rose 0.4% to $954.18 an ounce.
