Gold Prices: In the international market, gold prices reached a new record level on Friday, September 13. The market rose due to the expectation of interest rate cut by the US Federal Reserve. The fall in the dollar also increased the price of gold. At 2.10 pm international time, spot gold was trading 0.7% higher at $ 2,576.48 an ounce. US gold futures jumped 1% to $ 2,605.30.
Analysts say that the bulls of the gold market are now trying to push the price of gold to $3,000 per ounce. Especially at a time when there is uncertainty about the presidential election in the US and the world’s major central banks are preparing to ease monetary policy.
Jim Wikoff, senior market analyst at Kitco Metals, said, “There are signs of a rise in the gold and silver markets. All the stars appear to be in favor of the bulls. The European Central Bank has reduced its main interest rate this week. The Federal Reserve may also reduce interest rates next week as inflation figures in the US are soft.”
The CME FedWatch tool also indicates a high probability of interest rate cuts next week. The probability of a 0.25 percent reduction in interest rates is said to be around 53% and the probability of a 0.50% reduction is around 47%. This will be the first rate cut by the Federal Reserve since 2020. Due to this expectation, gold prices are continuously rising.
Analysts at Commerzbank said, “The market still expects the Federal Reserve to cut interest rates by around 1% by the end of the year, meaning a rate cut of around 0.50% could be announced at one of the two remaining meetings after September. Therefore, gold prices are likely to continue to rise in the coming months due to these aggressive rate cuts.”
Other precious metals also rose
Apart from gold, the prices of other metals have also increased. Palladium rose 1 percent to $ 1,056.00 and has gained about 15% this week. Russia is the world’s largest producer of palladium. At the same time, spot silver rose 2.4% to $ 30.62 and platinum rose 1.8% to $ 994.80.
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