Gold prices rise after reaching a record high.
The gold price (XAUUSD) rose on Monday. The yellow metal reached a record high above $2,441 during the Asian session on Monday, fueled by fresh prospects for interest rate reduction from the US Federal Reserve (Fed) and escalating geopolitical concerns in the Middle East. Meanwhile, rising tensions between Russia and Ukraine fueled safe-haven demand, with both countries launching strikes on each other over the weekend.
Hopes for Fed rate reduction and rising Middle East tensions increase safe-haven assets such as gold.
Later on Monday, Gold traders will focus on the Federal Reserve’s (Fed) Bostic, Barr, Waller, Jefferson, and Mester speeches, which may provide insight into the future path of monetary policy. The cautious stance or hawkish comments from Fed officials may limit the precious metal’s gains.
Daily Market Movers: Gold price edges up amid geopolitical dangers and uncertainty in the Middle East.
According to Reuters, Iranian state media reports that there is “no sign of life” at the crash scene of the chopper carrying Iranian President Ebrahim Raisi.
Richmond Fed President Thomas Barkin acknowledged that inflation is reducing but stated that it will “take more time” to meet the Fed’s 2% target.
Cleveland Fed President Loretta Mester stated that the Fed’s present monetary policy stance is appropriate. It continues to evaluate incoming economic data.
Fed Governor Michelle Bowman described the policy as restrictive, but she is willing to raise interest rates if inflation slows or reverses.
According to the CME FedWatch tool, financial markets have priced in a 10% likelihood of a rate cut in June and roughly 80% chance in September.
According to official figures issued Tuesday, the People’s Bank of China (PBoC) added 60,000 troy ounces of gold to its reserves in April, making it the 18th consecutive month of gold acquisitions.
