PT Solid Gold Berjangka | Gold Holds Near Record High as US Data Support Deeper Rate Cuts
GOLD SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | Gold steadied after jumping more than 1% in the previous session as weak US data bolstered the case for deeper rate cuts.
Bullion traded near $2,660 an ounce, after touching a record high on Tuesday following a report showing US consumer confidence fell the most in three years this month, pushing down the dollar and Treasury yields. Silver was near the highest since May after surging by 4.6% on Tuesday in its biggest daily gain in four months.
Swaps traders increased bets for more than three-quarters of a point of easing by the Federal Reserve this year, suggesting another 50-basis-point cut is in store. Lower rates are a positive for gold, which doesn’t pay interest, while a weaker dollar makes it cheaper for many buyers.
The precious metal has now surged almost 30% this year, with the rally gaining momentum after the Fed’s half-point cut last week. Prices have also been supported by strong central bank purchases and heightened geopolitical tensions driving haven demand. A too-close-to-call US presidential election that could be massively consequential for financial markets is now less than six weeks away.
Spot gold was steady at $2,658.10 an ounce as of 8:15 a.m. in Singapore after reaching an all-time high of $2,664.39 on Tuesday. The Bloomberg Dollar Spot Index slipped 0.1% following an 0.5% drop in the previous session. Silver, platinum and palladium were little changed.
Investors are waiting for more US data – including the personal consumption expenditures gauge and jobless claims – due later in the week, for additional indications on the Fed’s likely easing path.
Source : Bloomberg