October 18, 2024
New Delhi, India
Gold Prices Today
Gold (XAU/USD) extended its rally on Friday, breaking past the $2,700 mark to reach a fresh record high during the Asian session. The surge is largely driven by expectations of interest rate cuts by major central banks, which boost demand for the non-yielding metal. Additionally, heightened tensions in the Middle East and uncertainty surrounding the upcoming US Presidential election further underpin gold’s rise.
Key Factors Driving Gold’s Surge
- Interest Rate Cuts: Central banks, including the European Central Bank (ECB) and the US Federal Reserve, are expected to continue cutting rates, making gold more attractive as a non-yielding asset. The ECB recently implemented its third rate cut this year, while the Fed is anticipated to follow with more reductions.
- Geopolitical and Political Risks: Escalating tensions in the Middle East, along with the tight US Presidential race between Donald Trump and Kamala Harris, are adding to the global uncertainty, which historically favors gold as a safe haven.
- USD Weakness: A slight pullback in the US Dollar from its highest level since August has also helped propel the gold price, though the Fed’s expected cautious approach to rate cuts could limit further USD declines.
Also Read: USDINR Today: Rupee Gains Amid Modest USD Decline, Faces Pressure from Crude Prices and More
US and Global Economic Data
- US Economic Data: The US economy showed resilience, with retail sales rising by 0.4% in September, beating expectations of 0.3%. Initial Jobless Claims for the week ending October 12 dropped to 241K, down from the expected 260K.
- China’s Growth: China’s GDP expanded by 0.9% in Q3 2024, with an annual growth rate of 4.6%. Despite this, markets showed little reaction, remaining focused on geopolitical events and central bank policies.
Outlook for Gold
While gold continues to benefit from favorable conditions, traders are cautiously eyeing upcoming US housing market data and Fed Governor Christopher Waller’s speech for short-term opportunities. Any signs of stronger economic performance or policy shifts could influence the next move for gold prices.
As of writing Gold price(XAU/USD) was trading at 2,70 up 7 Pts at 10:30 A.M IST today.
Check Q2 results
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
