Gold $2,411.09 0.04
Silver $30.79 1.74
Platinum $1,008.41 0.22
Palladium $968.23 2.39
Gold Hits Record High

Gold Prices Soar to Historic Highs Amid Economic Optimism

Posted on March 7, 2024
Writer: James Miller

Gold surged to a historic peak on Mar. 6, primarily fueled by expectations of U.S. monetary policy easing. The gold spot price hit $2,145.09 per ounce, while palladium crossed the $1,000 mark for the first time since Jan. 12.

The price of gold climbed by 0.8%, reaching an unprecedented peak of $2,152.09 earlier in the day. Silver prices also increased by 1.9% to $24.15 per ounce. The weakening dollar further bolstered the rally in gold prices following Federal Reserve Chair Jerome Powell’s hint at a potential rate cut later this year. 

The expectation of higher U.S. interest rates typically dampens gold’s appeal by offering better returns on alternative investments like bonds and by strengthening the dollar, which makes gold more expensive for international buyers. 

Analysts from Deutsche Bank observed that the gold market’s response exceeded long-term fair market value expectations. The trading community now expects a 70% chance of a Fed rate cut in June. Ryan McKay from TD Securities highlights that Commodity Trading Advisors (CTAs) are aggressively taking long positions in gold.

The London Bullion Market Association reports that the London gold price benchmark also reached an all-time high during an afternoon auction. In addition to gold, platinum prices increased by about 3% to $906.70 per ounce, and palladium jumped by about 10% to $1,035.83. Bart Melek from TD Securities reports that funds have significantly increased their buying of palladium, mainly driven by technical reasons and a possibly decreasing interest in electric vehicles.

For more detailed information and comprehensive analysis, read the full article on Reuters.

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