Gold prices extended their record rally on Wednesday, buoyed by a weaker dollar and safe-haven demand from escalating tensions in the Middle East, while investors looked forward to more US economic data for policy clues.
Gold price per tola decreases Rs500 in Pakistan
Fundamentals
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Spot gold edged 0.2% higher to $2,283.47 per ounce, as of 0055 GMT, after hitting an all-time high of $2,288.09 earlier in the session.
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US gold futures rose 1% to $2,303.80 per ounce.
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The US dollar eased 0.1% after hitting its highest levels in almost five months in the previous session, making gold less expensive for other currency holders.
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US job openings edged up in February, though labor market conditions are gradually easing in support of expectations that the Federal Reserve will start cutting interest rates by June.
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A pair of Federal Reserve policymakers said it would be “reasonable” to cut US interest rates three times this year, even as stronger recent economic data has sown investor doubts about that outcome.
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Israel Prime Minister Benjamin Netanyahu said the country mistakenly killed seven people in a Gaza airstrike, while the US and other allies called for explanations amid widespread condemnation.
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Gold Fieldssaid the group’s first-quarter output is seen 20% lower due to operational challenges in South Africa as well as bad weather in Australia and Peru.
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Gold’s searing rally is doing nothing to reignite enthusiasm for platinum jewellery in Asia, analysts said.
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Traders are pricing in a 64% probability that the Fed will begin cutting rates in June, according to the CME Group’s FedWatch Tool.
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Lower interest rates reduce the opportunity cost of holding bullion.
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Spot silver rose 0.3% to $26.19 per ounce, platinum edged up 0.3% to $921.39 and palladium was unchanged at $1,003.60.
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