Gold rose for a third day after the Federal Reserve indicated that it's preparing to cut interest rates for the first time in a decade as the global economy slows.
Bullion's trading above $1,400 an ounce again as investors took note of the Fed's dovishness, damping doubts over monetary policy easing that arose following stronger-than-expected U.S. payrolls data. Speaking to Congress on Wednesday, Chairman Jerome Powell said June's jobs report was “great news,” but not enough to tilt the balance because wages weren't rising fast enough to trigger much inflation.
Gold is trading near a six-year high on the prospects of lower rates, which boost the appeal of non-interest-bearing assets, with geopolitical and trade tensions also spurring demand. Despite a truce between the U.S. and China, Powell stressed downside risks stemming from uncertainties over trade and slowing momentum in some economies. Minutes from the Fed’s June meeting confirmed an inclination among officials to ease policy soon.
Spot gold climbed as much as 0.6% to $1,427.23 an ounce, and was at $1,425.02 at 9:02 a.m. in Singapore. Bullion hit $1,439.21 on June 25, the highest level since 2013. The Bloomberg Dollar Spot Index dropped 0.1%.
In other precious metals, spot silver rose 0.3% and platinum gained 0.3%. Palladium advanced 0.5% and is trading near an all-time high reached in March.
Source : Bloomberg