Gold prices climbs on darkening economic outlook, rate cuts

Gold prices climbed again on Thursday after topping the $1,500 mark in the previous session, as central banks around the world slashed interest rates amidst fears of a global recession.

Spot gold rose 0.3 percent to $1,505 per ounce as of 0104 GMT.

On Wednesday, gold soared over 2 percent to break the $1,500 barrier for the first time in over six years.

U.S. gold futures were down 0.3 percent at $1,515.30 an ounce.

Chicago Fed President Charles Evans signaled on Wednesday he was open to lowering rates to bolster inflation and to counter risks to economic growth.

Futures moved to price in a 100 percent probability of an Fed easing in September.

U.S. 10-year Treasury yields dropped further below three-month rates, an inversion that has reliably predicted recessions in the past.

Central banks in New Zealand, India and Thailand surprised markets with aggressive easing on Wednesday. The Philippines central bank is expected to cut later today.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 1.02 percent to 845.42 tonnes on Wednesday from 836.92 tonnes on Tuesday.

Source: Reuters

Comments
Loading...