 "gold price, gold share")
Data showed production at U.S. factories increased more than expected in June, contributing to a solid rebound in output in the second quarter.
Gold prices extended their rise to a fresh all-time high on Wednesday, as growing optimism for an interest-rate cut from the U.S. Federal Reserve in September and a weaker dollar boosted demand.
Spot gold eased about 0.2% to $2,462.85 per ounce as of 1548 GMT, driven by profit-taking, after the bullion hit a high of $2,482.29 earlier in the session.
U.S. gold futures steadied at $2,461.88.
“The expectation that we are getting closer to a Fed interest rate cut and we’ve seen this as yields continue to slowly grind lower in anticipation, that, along with a weaker dollar, are the main supportive factors behind this gold move,” said David Meger, director of alternative investments and trading at High Ridge Futures.
More Fed policymakers have suggested they are getting increasingly comfortable that the pace of price increases is more firmly on track, back down to the Fed’s goal, after higher-than-expected readings earlier in the year.
Fed Governor Christopher Waller said the time for a U.S. central bank interest rate cut “is drawing closer”, but uncertainty about the path of the economy makes it unclear when a lowering in the cost of short-term borrowing might happen.
Data showed production at U.S. factories increased more than expected in June, contributing to a solid rebound in output in the second quarter.
Markets now see a 98% chance of a U.S. rate cut in September, according to the CME FedWatch Tool.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.
The U.S. unit weakened 0.4% to near a four-month low against a basket of currencies. [USD/]
Elsewhere, silver fell more than 3% to $30.24 per ounce. Platinum shed 0.3% to $996.90 and palladium dipped 0.4% to $955.68.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Jul 17 2024 | 11:48 PM IST
