Gold Reaches New Record High

Gold prices in the spot market rose by 1.54% to a new record high of $2,459.25 per ounce. On Monday, prices hit their highest level since May 20, when the metal surged to a record of $2,449.89. U.S. gold futures also climbed by 1.27% to a new record of $2,459.70. Gold prices increased following comments from Federal Reserve Chair Jerome Powell that reinforced the rationale for a potential interest rate cut in September, as investors await additional economic data for clues on monetary policy. IG market strategist Yeap Jun Rong stated, “Powell continues to lay the groundwork for the upcoming rate cut. The markets are fully anticipating a rate cut in September, which may keep sentiment towards gold prices well supported ahead of the cut.” Powell mentioned on Monday, “The three readings of U.S. inflation during the second quarter of this year somewhat increase confidence that the pace of price increases is sustainably returning to the Federal Reserve's target, indicating that a rate cut may not be far off." Interest rate cuts typically enhance the appeal of gold, which does not yield interest. As for other precious metals, silver in the spot market fell by 0.7% to $30.79 per ounce, platinum dropped by 0.2% to $992.85, and palladium decreased by 0.5% to $945.56.