Spot gold prices surged to $3,567 per ounce on Wednesday as investors await a crucial jobs report on Friday for clues on the central bank’s monetary policy stance going forward.
Gold prices hit a new all-time high on Wednesday as investors flocked to the safe-haven asset amid rising hopes of the Federal Reserve cutting interest rates in September.
Spot gold prices surged to $3,567 per ounce on Wednesday as investors await a crucial jobs report on Friday for clues on the central bank’s monetary policy stance going forward. Fed Governor Christopher Waller stated that there could be multiple rate cuts over the next few months. “Whether it’s like every other meeting, every meeting, we’ll have to wait and see [what] the data says,” Waller said, according to the report.
“The rallies are underpinned by growing expectations that the U.S. Federal Reserve is poised to resume interest rate cuts with three weeks to go until the next policy meeting,” said analysts at ING Think in a recent note, explaining the surge in prices of gold and silver. The two precious metals have surged over 5% and 7% in the past week, respectively.
Data from the CME FedWatch tool points to a 95.6% probability of the Fed cutting interest rates by 25 basis points in September.
Meanwhile, U.S. equities gained in Wednesday’s midday trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.32%, while the Invesco QQQ Trust (QQQ) rose 0.67%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.
The SPDR Gold Shares ETF (GLD) was up 0.81% at the time of writing, while the iShares Gold Trust ETF (IAU) was up 0.8%.
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