World gold price hits new peak

A weak US dollar and investor confidence in US interest rate cuts helped gold prices rise to $2,531 in the first session of the week.

"The main reason for the increase in gold prices is the demand for financial investment, especially from ETFs. Investor confidence in general has also improved as they expect the US Federal Reserve (Fed) to cut interest rates at its September meeting," said Aakash Doshi, Director of Commodities for North America at Citi Research. He predicted that gold prices could reach $2,600 by the end of this year and $3,000 an ounce by the middle of next year.

Yesterday, reserves at SPDR Gold Trust - the world's largest gold ETF - also reached a 7-month high of 859 tons. The CME FedWatch interest rate tracker shows that the market is currently betting on a 71% chance of the Fed cutting interest rates by 25 basis points (0.25%) in September.

Investors will be closely watching the Fed this week, including the minutes of its July meeting, released on August 21, and a speech by Fed Chairman Jerome Powell on August 23.

Gold prices have risen more than 20% since the start of the year, putting the precious metal on track for its biggest annual gain since 2000. " Geopolitical volatility, speculative demand and increased ETF buying are all supporting gold prices," said Joseph Cavatoni, market strategist at the World Gold Council.

Except for gold, other precious metals lost value yesterday. Silver fell 0.2% to $29.4 an ounce. Platinum lost 0.5% to $949. Palladium fell 0.5%, closing at $927.

Source: https://baoquangninh.vn/gia-vang-the-gioi-lap-dinh-moi-3314959.html