PT Solid Gold Berjangka | Gold Holds Five-Day Drop as Rate-Cuts Bets Get Less Aggressive
GOLD SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | Gold was steady – after five days of declines – as comments from Federal Reserve policymakers added to signs US rate cuts won’t be as aggressive as previously thought.
Bullion traded near $2,620 an ounce, after closing down 0.8% on Tuesday as markets priced in a more gradual pace of easing this year and into early 2025. Swaps markets now point to about 50 basis points of cuts this year, down from 75 basis points about two weeks ago.
Fed Bank of Boston President Susan Collins emphasized on Tuesday that monetary easing should be careful and data-based. Her Atlanta counterpart Raphael Bostic said while risks to inflation have come down, threats to the labor market have risen, though the economy is still strong. Traders will be watching minutes of the Fed’s latest meeting and US inflation data due later this week for further clues on the rate path.
The precious metal has surged by more than a quarter this year, hitting successive record highs, on rate-cut optimism, as well as strong central bank purchases and heightened geopolitical tension. Fears that hostilities in the Middle East could morph into a full-blown regional war appear to have eased in recent days, possibly reducing some haven demand, while gold has also come under pressure due to a rallying dollar.
Spot gold was steady at $2,622.73 an ounce as of 8:19 a.m. in Singapore, near the all-time high of $2,685.58 hit in September. The Bloomberg Dollar Spot Index was flat after a run of seven daily gains. Silver, platinum and palladium all edged higher.
Source : Bloomberg