Gold prices continue to climb, up 6.4% since the beginning of September, marking its third consecutive month of gains, driven by strong global demand for safe-haven assets. This reflects ongoing economic uncertainty and investors’ search for safety.
Gold prices were steady on Thursday, holding near their previous day’s high, as expectations for another significant U.S. interest rate cut this year persist.
Gold prices are muted ahead of Federal Reserve policymakers’ statements later in the day.
At the start of trading, gold prices per ounce rose 0.2% on Thursday, hitting a new high of $2,664 after starting the session at $2,657, and are currently trading at $2,663.
Yesterday, gold hit a record high of $2,670 per ounce, according to Gold Billion’s technical analysis. The US dollar rebounded yesterday, gaining 0.6%, which slowed gold’s further rise to historic levels.
In addition, markets are awaiting a new Fed chair to determine the next move for gold after the bullish trend has lost steam without yet seeing a negative correction.
Several important economic data from the US are due on Thursday, including the final reading of the second-quarter GDP and weekly jobless claims, which assess the performance of the US labor market.
At the same time, markets are anticipating statements from the Fed chair and other members to anticipate the future of US monetary policy and the Fed’s intention to continue cutting interest rates in the short term.
This upward trend in the price of gold reflects the uncertainties in global markets and reinforces its position as a safe haven in a context of financial instability. Investors are turning to gold to protect their wealth in the face of growing economic and geopolitical risks, and this trend is expected to continue in the near future, pending further guidance from central banks and financial regulators.