[BENGALURU] Gold prices climbed to an all-time high on Wednesday (Oct 8), nearing the crucial US$4,000-per-ounce level, bolstered by economic and geopolitical uncertainty and expectations of additional interest rate cuts by the US Federal Reserve.
Spot gold was up 0.3 per cent at US$3,995.14 per ounce, as at 8.44 am, after hitting a fresh high of US$3,999.09 earlier in the session.
US gold futures for December delivery gained 0.3 per cent to US$4,016.30.
Americans grew more worried about the future of the job market in September, while at the same time bumping up projections for the future path of near-term inflation, a report from the Fed Bank of New York said on Tuesday.
The US government shutdown entered its seventh day on Tuesday, and has postponed the release of key economic indicators, forcing investors to rely on secondary, non-government data to gauge the timing and extent of Fed rate cuts.
Markets are pricing in an additional 25-basis-point rate cuts in both October and December, with probabilities of 95 per cent and 83 per cent, respectively, according to the CME FedWatch tool.
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Non-yielding gold thrives in a low-interest-rate environment and during economic uncertainties.
Fed governor Stephen Miran said on Tuesday that the bond market’s current relative calm, as measured by long-term interest rates, supports a push to lower interest rates aggressively.
Gold has climbed 52 per cent so far this year on strong central bank buying, increased demand for gold-backed Exchange-Traded Fund (ETFs), a weaker dollar and growing interest from retail investors seeking a hedge amid rising trade and geopolitical tensions.
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China’s central bank added gold to its reserves in September for the 11th consecutive month, data from the People’s Bank of China showed.
Goldman Sachs raised on Monday its December 2026 gold price forecast to US$4,900 per ounce from US$4,300, citing strong Western exchange-traded fund (ETF) inflows and likely central bank buying.
Elsewhere, spot silver edged 0.1 per cent higher to US$47.89 per ounce, platinum gained 1.2 per cent to US$1,637.95, and palladium climbed 0.8 per cent to US$1,348.08. REUTERS
