Gold prices rallied to a record high on Thursday as Federal Reserve officials reiterated expectations of interest rate cuts in 2024, even if their timing was unclear, while traders await key US jobs data.
Spot gold was steady at $2,299.28 per ounce, and hit a record high of $2,304.09 earlier in the session. Bullion has hit record highs in each session since last week’s Thursday.
US gold futures gained 0.2 percent to $2,318.70.
“What is driving the gold price is currencies globally depreciating against the US dollar for a whole range of reasons … people acquiring gold as basically a protection against local currency depreciation,” Michael Langford, chief investment officer at Scorpion Minerals, said.
Federal Reserve officials including US central bank chief Jerome Powell on Wednesday continued focusing on the need for more debate and data before interest rates are cut, a move financial markets expect to occur in June.
US services industry growth slowed further in March, which bodes well for the inflation outlook. The US jobs report for March is due to be released on Friday, with new inflation data coming next week.
