Gold price hits five-week high. Will gold rate hit record new level in August?
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Gold prices gained over 1 per cent to hit a five-week high on Monday as the dollar and U.S. bond yields weakened amid uncertainty ahead of a U.S. deadline of August 1 for countries to strike trade deals with Washington or face more tariffs. Spot gold was up 1.3 per cent at $3,394.23 per ounce, hitting its highest since June 17. U.S. gold futures settled 1.4 per cent higher at $3,406.40.The U.S. dollar index was down 0.6 per cent, making dollar-denominated gold more affordable for buyers using other currencies, while benchmark 10-year U.S. Treasury yields hit a more than one-week low."With the August 1st deadline looming, it brings a level of uncertainty to the market and that certainly is supportive," said David Meger, director of metals trading at High Ridge Futures.The European Union is exploring a broader set of possible counter-measures against the U.S. as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.On the interest rate front, traders are pricing about a 59 per cent chance of a rate cut by the U.S. Federal Reserve in September, according to the CME FedWatch Tool.U.S. Treasury Secretary Scott Bessent said the entire Federal Reserve needed to be examined as an institution.Talk of earlier-than-expected U.S. rate cuts is building, with speculation around a possible replacement of Fed Chair Jerome Powell and reshaping of the Fed adding to market jitters, Meger said.Gold is considered a hedge against uncertainty and tends to perform well in a low interest rate environment.Data showed the world's leading gold consumer, China, brought in 63 metric tons of the precious metal last month, the lowest amount since January. Its imports of platinum in June fell 6.1% from the prior month.Spot silver gained 2.1% to $38.99 per ounce, platinum also rose 1.4% to $1,440.75 and palladium was 2.1% higher at $1,266.04.A1. Spot gold was up 1.3 per cent at $3,394.23 per ounce, hitting its highest since June 17. U.S. gold futures settled 1.4 per cent higher at $3,406.40.A2. Spot silver gained 2.1% to $38.99 per ounce, platinum also rose 1.4% to $1,440.75 and palladium was 2.1% higher at $1,266.04.
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