Gold sets another record high above $2,300 after Jerome Powell comments
Gold set another record high above $2,300 an ounce on the likelihood the Federal Reserve will cut interest rates this year, and sustained demand from central banks.
Bullion touched a peak of $2,304.96 an ounce before trading little changed as investors took comfort in Fed Chair Jerome Powell’s assurance on Wednesday that it will likely be appropriate to begin lowering borrowing costs “at some point this year.” Silver held near the highest level in almost three years. Lower rates are generally positive for non-yielding precious metals.
Gold has been on a tear since mid-February — setting a record each day so far this week — as investors wager that it stands to benefit from the impending pivot by the Fed. Bullion has found additional support from heightened geopolitical risks, including in the Middle East and Ukraine, as well as central-bank purchases.