PT Solid Gold Berjangka | Gold Extends Advance on Rate-Cut Optimism, Mideast Tensions
GOLD EMAS PT SGB SOLID GOLD BERJANGKA SOLID GROUP SG BERJANGKA
Solid Gold Berjangka | Gold was slowly gaining ground as optimism grew that the U.S. Federal Reserve would cut interest rates before the end of the year, while heightened geopolitical tensions in the Middle East stimulated haven demand.
Bullion closed up 1% on Monday as investors weighed dovish comments from U.S. policymakers. Richmond Fed President Thomas Barkin said he expects high interest rates to further slow the economy and cool inflation toward the central bank’s 2% inflation target, while New York Fed President John Williams said there will be a rate cut, but the timing will depend on a synthesis of data He stated that it would depend on the totality of the data.
Swap traders are now cautiously raising their bets on policy easing this year. Lower interest rates typically favor gold, which does not pay interest.
Investors were also monitoring the latest developments in the Middle East, where Israel’s rejection of a Hamas-backed cease-fire proposal to end fighting in Gaza has elevated gold’s haven status.
Gold has risen 13% this year and hit a string of all-time highs in April amid uncertainty about when the U.S. central bank will cut interest rates. Rising yields were also a headwind for the government bond market last week, which had its worst month of the year in April.
Spot gold was up 0.2% at $2327.35 an ounce as of 8:46 a.m. in Singapore. The Bloomberg Dollar Spot Index was little changed. Silver fell, but palladium and platinum rose.
Source: Bloomberg