In Asian trades on Wednesday, gold prices consolidated their three-day uptrend to a new record high above $2,480, with an eye on $2,500 and beyond. With the looming US Federal Reserve interest-rate cut in September, a new lifetime high for the non-interest-bearing gold price is a surprise.<\/p>\n
According to precious metal analysts, markets have fully priced in the inevitable September Fed rate cut, with the odds of another cut in December standing at more than 60%.<\/p>\n
According to Vijay Valecha, CIO at Century Financial, the yellow metal’s surge to an all-time high of $2,480 occurred as investors became more confident that rates would be cut by September. “On Monday, Jerome Powell also stated that the Fed was pleased with the trajectory of inflation.” Furthermore, geopolitical tensions and central bank purchases continue to boost the yellow metal. Meanwhile, on Tuesday, 10-year US Treasury yields fell to their lowest level in four months as rate cuts approach.<\/p>\n
According to Valecha, the Central Bank of the UAE’s gold reserves will reach Dh20.36 billion by the end of April 2024, a 12% increase over the same period last year. According to the latest data published by the central bank, its gold stockpile increased by 3.5% month over month, rising from Dh19.615 billion in March 2024.<\/p>\n
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