Gold costs reached their all-time high globally on Monday as the most recent data displaying a slowing inflation pattern in the US boosted expectations that the Federal Reserve might ship its first interest rate cut in June. Indian gold futures additionally hit a document high on Monday, monitoring beneficial properties in abroad markets and squeezing demand in the world’s second-biggest shopper of the valuable metallic, in keeping with sellers.
Spot gold was up 0.7 per cent at $2,247.48 per ounce, as of 1059 GMT (4:29 pm IST), after hitting an all-time high of $2,262.19 earlier in the session. US gold futures climbed 1.3 per cent to $2,268.10. “The slightly lower than expected US inflation figure last Friday is supporting the outlook of a mid-year rate cut by the Fed,” mentioned UBS analyst Giovanni Staunovo.
Bullion costs hit document highs in different currencies, together with the Indian Rupee, euros, the yuan, Japanese Yen and the British pound sterling. Meanwhile, spot silver rose 0.4 per cent to $25.06 per ounce, platinum gained 0.6 per cent to $913.30 and palladium climbed 0.7 per cent to $1,022.30.
Data on Friday confirmed US costs moderated in February, preserving a June interest rate cut from the Fed on the desk. Lower interest charges scale back the chance price of holding bullion. Federal Reserve Chair Jerome Powell mentioned February’s inflation data was “more along the lines of what we want to see.”
Growing rate cut expectations, safe-haven demand and central financial institution purchases amid geopolitical tensions have boosted gold by greater than 9 per cent this yr. “Markets will now want to see if the payroll data will confirm a soft landing from the job market in the US. Ongoing solid demand is helping the yellow metal as well, although higher prices may weigh on jewellery demand,” Staunovo mentioned.
“Today’s price action is happening in a very low liquidity environment – most European and many APAC markets are still closed for Easter Monday. So, it would not be surprising to see these moves reverse when participation rebuilds later in the week,” mentioned Ilya Spivak, head of world macro at Tastylive.
(Reuters)
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