Gold prices steady near record high on Tuesday

Gold prices remained stable near their peak on Tuesday as investors looked forward to the US Federal Reserve minutes and Chair Jerome Powell’s speech for clues on potential rate cuts.

Spot gold held at $2,503.05 per ounce, close to the record high of $2,509.65 reached on Friday. US gold futures stayed steady at $2,540.90.

“Gold prices have been largely steady in the Asian session, seemingly catching a breather as buyers seek to defend its new record high,” said IG market strategist Yeap Jun Rong.

Prices are on the rise, possibly aiming for $2,665. The rally is fuelled by Fed rate cut expectations, central bank purchases, and safe-haven demand amid Middle East tensions, with prices up over 20 per cent this year.

Gold’s allure typically shines in a low-interest-rate environment. The Fed is expected to reduce rates by 25 basis points at the remaining three meetings of 2024, with most economists in a Reuters poll downplaying recession fears.

“A cut will be dependent on whether incoming economic data continues to support the recent softness seen in key economic measures,” said Ole Hansen, head of commodity strategy at Saxo Bank.

In the metal market, silver dropped by 0.4 per cent to $29.36 per ounce, while platinum rose by 0.4 per cent to $957.08 and palladium fell by 0.7 per cent to $925.47.

Attribution: Reuters

Subediting: M. S. Salama