(Bloomberg) -- Gold climbed toward a fresh record a day after the Federal Reserve kicked off an easing cycle with a 50-basis-point cut.
The precious metal advanced above $2,585 an ounce on Thursday, reversing earlier declines of as much as 0.3% earlier in the session. The fluctuations come after bullion touched an all-time high Wednesday in the immediate aftermath of the Fed decision before retreating as Chair Jerome Powell signaled policymakers aren’t in a rush to ease aggressively.
Gold has rallied by more than 25% this year, with gains supported by the anticipation of Fed easing. Central-bank buying and haven demand due to conflicts in the Middle East and Ukraine have also helped.
While the Fed’s first cut marked an aggressive start to the pivot, Powell said Wednesday that no one should see that as a “new pace.” Still, lower borrowing costs benefit gold, which doesn’t pay any interest.
Spot gold traded 1.2% higher at $2,589.93 an ounce at 12:08 p.m. in New York. The Bloomberg Dollar Spot Index fell 0.3%. Silver rallied 3.4% to more than $31 an ounce, while palladium and platinum also climbed.
--With assistance from William Clowes.
©2024 Bloomberg L.P.
