U.S. gold futures price for December delivery edged down 0.5 per cent to $3,795.80. Spot gold rate was steady at $3,762.73 per ounce, after hitting a record high of $3,790.82 on Tuesday. However, the dollar index, which measures the greenback against a basket of major currencies, rose about 0.5 per cent, making dollar-priced bullion more expensive for other currency holders. Gold prices were trading near the record high hit on Tuesday, as expectations of further U.S. interest rate cuts and geopolitical uncertainty boosted demand for the safe-haven metal.
The rally is being fuelled by lower U.S. funding costs alongside a cocktail of investor concerns spanning overvalued equities, Fed independence, and mounting geopolitical risks, said Ole Hansen, head of commodity strategy at Saxo Bank.
Powell said that the Fed would continue to balance concerns over labour market weakness with worries about inflation, while central bank officials took stances on both sides of the monetary policy path divide.
Investors are now looking ahead to the U.S. Personal Consumption Expenditures index, the Fed's preferred inflation gauge, on Friday for further cues on potential rate cuts.
Market participants are pricing in two more 25-basis-point cuts this year, one each in October and December, with 94 per cent and 77 per cent probability, respectively, the CME FedWatch tool shows.
Gold, considered a safe-haven asset during times of uncertainty, tends to perform well in a low interest rate environment.
Elsewhere, NATO warned Russia on Tuesday that it would use "all necessary military and non-military tools" to defend itself, as U.S. President Donald Trump shifted rhetoric by asserting that Ukraine could recover all territory occupied by Russia.
"With geopolitical turbulence and economic uncertainty driving safe-haven demand, alongside growing expectations of a dovish Fed, gold (should) consolidate above $3,750 in the short term, with the prospect of a new resistance around $3,900," said Ricardo Evangelista, senior analyst at ActivTrades.
Spot silver fell 0.3 per cent to $44.89 per ounce. Platinum fell 0.7 per cent to $1,467.39 and palladium lost 0.1 per cent to $1,218.61.
Q1. What is spot silver price?
A1. Spot silver fell 0.3 per cent to $44.89 per ounce. Platinum fell 0.7 per cent to $1,467.39 and palladium lost 0.1 per cent to $1,218.61.
Q2. What is significance of Gold?
A2. Gold, considered a safe-haven asset during times of uncertainty, tends to perform well in a low interest rate environment.
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The rally is being fuelled by lower U.S. funding costs alongside a cocktail of investor concerns spanning overvalued equities, Fed independence, and mounting geopolitical risks, said Ole Hansen, head of commodity strategy at Saxo Bank.
Powell said that the Fed would continue to balance concerns over labour market weakness with worries about inflation, while central bank officials took stances on both sides of the monetary policy path divide.
Investors are now looking ahead to the U.S. Personal Consumption Expenditures index, the Fed's preferred inflation gauge, on Friday for further cues on potential rate cuts.
Market participants are pricing in two more 25-basis-point cuts this year, one each in October and December, with 94 per cent and 77 per cent probability, respectively, the CME FedWatch tool shows.
Gold, considered a safe-haven asset during times of uncertainty, tends to perform well in a low interest rate environment.
Elsewhere, NATO warned Russia on Tuesday that it would use "all necessary military and non-military tools" to defend itself, as U.S. President Donald Trump shifted rhetoric by asserting that Ukraine could recover all territory occupied by Russia.
"With geopolitical turbulence and economic uncertainty driving safe-haven demand, alongside growing expectations of a dovish Fed, gold (should) consolidate above $3,750 in the short term, with the prospect of a new resistance around $3,900," said Ricardo Evangelista, senior analyst at ActivTrades.
Spot silver fell 0.3 per cent to $44.89 per ounce. Platinum fell 0.7 per cent to $1,467.39 and palladium lost 0.1 per cent to $1,218.61.
FAQs
Q1. What is spot silver price?
A1. Spot silver fell 0.3 per cent to $44.89 per ounce. Platinum fell 0.7 per cent to $1,467.39 and palladium lost 0.1 per cent to $1,218.61.
Q2. What is significance of Gold?
A2. Gold, considered a safe-haven asset during times of uncertainty, tends to perform well in a low interest rate environment.
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