Gold rose to $2,030 an ounce on Thursday, extending gains for a sixth straight session, as the dollar weakened amid growing uncertainty over the outlook for U.S. interest rates.
The minutes of the Federal Reserve’s latest meeting showed officials expressed caution about cutting interest rates too quickly, possibly delaying the start of the easing cycle. Traders have largely abandoned bets on any Fed rate cuts in March and May, but continue to bet on the first one coming in June, with the odds of a 25 basis point cut at around 53%.
Investors now look to fresh PMI reports on Thursday, which could provide an update on U.S. private sector performance this month. Gold has also benefited from increased demand for safe-haven assets amid rising geopolitical tensions in the Middle East.
LGold is primarily traded on the London OTC market, the U.S. futures market (COMEX) and the Shanghai Gold Exchange (SGE). A standard futures contract is 100 troy ounces. Gold is an attractive investment during times of political and economic uncertainty. Half of the world’s gold consumption is for jewelry, 40% for investment, and 10% for industry. The largest gold producers are China, Australia, the United States, South Africa, Russia, Peru, and Indonesia. The largest consumers of gold jewelry are India, China, the United States, Turkey, Saudi Arabia, Russia, and the United Arab Emirates. Gold prices displayed by Trading Economics are based on over-the-counter (OTC) financial instruments and contracts for difference (CFDs). Our gold prices are for reference only and are not intended to be the basis for any trading decisions. Trading Economics has not verified any of the data and disclaims any obligation to do so.