Tags: central bank | gold | record

Central Bank Bids Propel Gold to Record $2,330 Peak

Central Bank Bids Propel Gold to Record $2,330 Peak
(Dreamstime)

Monday, 08 April 2024 10:30 AM EDT

Gold prices hit a record high for a seventh straight session Monday, fueled by central bank purchases and geopolitical tensions, while strong economic data failed to dull bullion's allure.

Spot gold was steady at $2,330.83 per ounce, as of 9:45 a.m. ET (1345 GMT), after hitting a record high of $2,353.79 earlier in the session. U.S. gold futures gained 0.3% to $2,350.80.

China's central bank added 160,000 troy ounces of gold to its reserves in March, it said. Turkey, India, Kazakhstan, and some eastern European countries have also been buying gold this year.

"The market is pricing rate cuts by June despite strong economic data. But, if we continue to see strong data, which indicates that Federal Reserve is in no hurry to cut rates, then gold will not be able to sustain the gains," said Bart Melek, head of commodity strategies at TD Securities.

"Central bank buying and geopolitical tensions are other supportive elements," Melek added.

Traders are pricing in a 52% prospect of a first 25 basis point cut in June, CME Group data showed. However, data on Friday showed U.S. job growth blew past expectations in March, calling into question the timing of rate cuts.

Lower interest rates reduce the opportunity cost of holding bullion.

COMEX gold speculators raised their net long positions by 20,493 contracts to 178,213 in the week ended April 2, data showed on Friday.

Spot silver was up 0.4% at $27.59, its highest in nearly three years.

With the latest move up in prices, there is upside potential for silver, UBS analysts said in a note, projecting their forecast endpoint at $32/oz.

India's silver imports hit a record high in February, as lower duties encouraged large purchases from the United Arab Emirates, officials told Reuters.

Platinum rose 3.2% at $956.60 and palladium firmed 3.9% at $1,042.52.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
Gold prices hit a record high for a seventh straight session Monday, fueled by central bank purchases and geopolitical tensions, while strong economic data failed to dull bullion's allure.
central bank, gold, record
303
2024-30-08
Monday, 08 April 2024 10:30 AM
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