"Gold has surged to a fresh record high above $3,600 an ounce as investors increase bets that the US Federal Reserve will cut interest rates this month, fuelling demand for the traditional safe-haven asset. Spot gold rose 0.8 per cent to trade at $3,614.24 an ounce, lifted by a weaker dollar and mounting concerns over the global economic outlook, US trade tensions and questions about the dollar's long-term dominance."
"The surge follows warnings from analysts at Goldman Sachs, who last week said gold could climb to nearly $5,000 an ounce if President Trump's sustained attacks on the Federal Reserve undermine its independence. Investors fear that political pressure on the Fed could weaken its resolve in fighting inflation, prompting a further flight from dollar-denominated assets into precious metals. The momentum behind gold underscores the scale of investor unease over the direction of US monetary policy and its impact on the global economy."
Gold climbed past $3,600 an ounce as investors increased expectations that the US Federal Reserve will cut interest rates this month, boosting demand for the safe-haven metal. Spot gold traded around $3,614.24, helped by a weaker dollar and concerns about the global economic outlook, US trade tensions and the dollar's long-term dominance. Prices have jumped over 35% since the start of the year as investors and central banks added holdings to hedge against inflation and policy uncertainty. Warnings that political pressure on the Fed could undermine its independence have heightened flows into bullion and may sustain demand.
Read at Business Matters
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