Philography/E+ via Getty Images
Gold futures rose again for a fourth straight record close on Wednesday after Federal Reserve Chair Jerome Powell reiterated that the central bank is likely to cut interest rates this year.
Powell said the Fed isn’t ready to cut yet, but it’s probably likely would find it appropriate “at some point this year.”
Gold’s role as a safe haven has also been aided by tensions in the Middle East and global shipping disruptions, China’s economic woes and a highly uncertain US presidential election later this year.
Bullion (XAUUSD:CUR) hit a record high of $2,152.25 an ounce, while palladium prices rose nearly 10% to $1,053.83 an ounce and platinum rose about 3% at $906.70 an ounce.
First-month Comex gold for March delivery is closed +0.8% at $2,150.30 an ounce, up 5.7% in the last five sessions, while silver closed in the first month of March +2.1% at $24,272/oz, the best liquidation value since December 27.
ETFs: (NYSEARCA:GLD), (NYSEARCA:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SCHOOL), (BAR), (OUNZ), (SLV), (PSLV), (SLVP), (SIVR), (SIL), (SILJ)
Powell’s comments reiterating that the Fed is on track to cut rates this year are not indicative of concerns from other central banks, Bloomberg’s Simon White said, believing gold’s new highs signal that Global central banks are likely accumulating the yellow metal in an effort to diversify away from the market. dollar.
These central banks may feel quite uncomfortable holding too many dollars when the United States persistently runs large fiscal deficits, which threaten to further erode the dollar’s real value and lead to higher inflation, White writes.