International gold holds near record levels amid rate cut hopes, Middle East tensions

Published on Aug 26, 2024 15:24

Gold steadied around $2560 per ounce in Asian trades Monday, close to last week`s record of $2570.40, as Fed Chair Jerome Powell`s Jackson Hole speech bolstered expectations of a September rate cut. Powell signaled readiness to adjust policy, with markets now pricing in 100bps of cuts this year, reducing the cost of holding gold. Weakness in US dollar also bolstered the gains in yellow metal. The dollar index dropped to 100.5, it�s weakest since December 2023, whereas dollar fell to 13-month low against the euro and a 2.5-year low against the pound, as BOE and BOJ leaders expressed caution on inflation. Rising Middle East tensions also added to bullion`s safe-haven appeal. Domestic futures rose to Rs 72,204 per 10 grams, still below last week`s high of over Rs 75,000.