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Gold Gains as Traders Weigh Path Forward for Fed Rate Cuts

A selection of gold bars of various weights sit at Gold Investments Ltd. bullion dealers in this arranged photograph in London, U.K., on Wednesday, July 29, 2020. Gold held its ground after a record-setting rally as investors awaited the outcome of a Federal Reserve meeting amid expectations policy makers will remain dovish, potentially spurring more gains. Photographer: Chris Ratcliffe/Bloomberg (Chris Ratcliffe/Bloomberg)

(Bloomberg) -- Gold rose as traders digested comments from a senior US policymaker and other central bank officials.

Bullion increased as much as 0.8% to rise above $2,668 an ounce, edging closer to the all-time high reached last month. Federal Reserve Governor Christopher Waller on Monday said recent economic data signals policymakers can approach subsequent interest-rate reductions with less urgency than they applied at their gathering last month.

Meanwhile, reserve managers from the central banks of Mexico, Mongolia and the Czech Republic made positive comments about gold on a panel in Miami at an annual industry conference held by the London Bullion Market Association.

Gold has risen more than 29% this year, with rate-cut optimism fueling recent gains. The metal has also been supported by robust purchases by central banks, as well as haven demand, amid ongoing conflicts in Ukraine and the Middle East.

Spot gold rose 0.5% to $2,662.19 an ounce at 1:39 p.m. in New York. The Bloomberg Dollar Spot Index rose, while the US 10-year Treasury yield fell. Palladium and platinum declined while silver rose.

--With assistance from Sybilla Gross and Jack Wittels.

©2024 Bloomberg L.P.