PT Solid Gold Berjangka | Gold Gains as US Data Backs Case for September Rate Cut From Fed
GOLD EMAS PT SGB Solid Group SG Berjangka Solid Gold Berjangka
Solid Gold Berjangka | Gold prices rose for a second day as the market digested the latest U.S. inflation data amid expectations that policy makers will be setting the stage for a September rate cut at the Federal Reserve’s meeting later this week.
Bullion rose to 0.7% in early Asian trading after closing 1% higher on Friday, following a report that the core personal consumption expenditure price index, the Fed’s preferred gauge of underlying inflation, rose at a modest pace in June. The data reinforced speculation that the U.S. central bank would cut interest rates.
The precious metal hit an all-time high earlier this month, but the rally was unwound as traders awaited a more firm message about when the Fed would pivot to its long-awaited gradual policy. Lower borrowing costs are usually beneficial for gold, which does not pay interest.
Fed officials are likely to indicate at the end of Wednesday’s meeting that a rate cut is likely to take place in September, according to economists surveyed by Bloomberg News. The swap market has fully factored in a September rate cut and could see two more rate cuts before the end of the year.
Gold is up about 16% this year. Along with bets on rate cuts, it has been supported by strong demand from central banks. In addition, continued geopolitical tensions and the tumultuous U.S. presidential election have increased its appeal as a safe-haven asset.
Spot gold was up 0.5% at $2,398.50 as of 7:52 AM in Singapore. The Bloomberg Dollar Spot Index was little changed. Silver, platinum, and palladium were all higher.
Source: Bloomberg