Gold prices rose on Friday, August 16, to a new record high on the Comex market in the United States, due to the weakness of the dollar. They welcomed expectations that the US Federal Reserve will cut interest rates at its meeting in September after important economic figures this week pointed in that direction.
Meanwhile, investors are also turning to safe-haven assets such as gold as tensions in the Middle East rise.
Comex Gold Futures U.S. December futures closed up $45.40, or 1.8%, at $2,537.80 an ounce this week. Gold futures were already up 2.8%.
In terms of pricegold spot It rose to a new record high of $2,500.99 per barrel during overnight trading. This was the first time that spot gold had crossed the $2,500 level, as the price at around 4:00 a.m. was at $2,507.28 per barrel.
The dollar index fell 0.4 percent, extending its fourth weekly decline, making gold attractive to investors holding other currencies.
Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on the economic outlook next Friday (August 23), the first day of the Kansas City Fed's annual economic meeting in Jackson Hole, Wyoming.
Producer Price Index (PPI) and Consumer Price Index (CPI) for July are due out this week. This suggests that inflation in the US is declining. This could make it more likely that the Federal Reserve will cut interest rates by 0.25% next month.
The U.S. economy is showing no signs of overheating, so central bankers should be wary of keeping policy tight for too long, said Chicago Fed President Auston Goolsbee.
“The ongoing geopolitical conflicts and the potential escalation of conflicts that Iran may be involved in, including the war in Ukraine, are all factors that are impacting demand for gold as a safe haven asset,” said Everett Millman, senior market analyst at Gainesville Coin.
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