Gold Surpasses $3,900 per Ounce for the First Time
Gold has surpassed the $3,900 per ounce mark for the first time this Monday, driven by the appeal of safe-haven assets following the yen's decline, the shutdown, and growing expectations of further interest rate cuts by the Federal Reserve (Fed).
Current Prices
- The spot gold price increased by 1.1% to $3,929.91 per ounce at 02:08 GMT.
- December contracts for American gold rose by 1.2% to $3,954.70.
Yearly Performance
Gold prices have jumped 49% since the beginning of the year, following a 27% increase in 2024. This growth is supported by:
- Massive purchases by central banks
- Increased demand for gold-backed exchange-traded funds (ETFs)
- A weakened dollar
- Growing interest from individual investors seeking coverage amidst escalating trade and geopolitical tensions
Recent Developments
This surge found new support last month after the Federal Reserve cut interest rates by a quarter of a percentage point and indicated that it would regularly reduce borrowing costs for the rest of the year.
Future Projections
According to the CME Group's FedWatch tool, investors estimate additional 25 basis point cuts in October and December, with probabilities of 95% and 83%, respectively.
Milestones
- The spot gold price crossed the $3,000 per ounce threshold for the first time in March.
- It reached $3,700 per ounce in mid-September. Many brokerage firms have become optimistic about this increase.
Other Markets
- The spot silver price rose by 1.2% to $48.53 per ounce.
- Platinum increased by 1.2% to $1,623.88.
- Palladium climbed by 1.2% to $1,275.65.
