Gold retreats from record high with Fed
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Bullion slipped by as much as 2.1 per cent, and is trading about US$60 away from Feb 24’s fresh all-time high of US$2,956.19 an ounce.
PHOTO: BLOOMBERG
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NEW YORK – Gold retreated as investors took profits after another record-breaking session, with prices still supported by growing optimism over the timing of the next US Federal Reserve rate cut and increasing haven demand.
Bullion slipped by as much as 2.1 per cent, and is trading about US$60 away from Feb 24’s fresh all-time high of US$2,956.19 an ounce.
Traders booked some profits after the latest data showed US consumer confidence fell in February by the most since August 2021 on concerns about the outlook for the broader economy.
The print also added to evidence that uncertainty over the Trump administration’s policies is weighing on households.
Swap markets now price in a quarter-point cut by the Fed in July.
That is providing support for bullion prices as lower rates are positive for the precious metal, which does not pay interest.
Haven demand driven by ongoing uncertainty over Mr Trump’s trade and geopolitical agendas is also supportive of bullion prices.
Looking ahead, investors will be analysing Feb 28’s core personal consumption expenditures price index, the Fed’s preferred inflation gauge, for clues about the central bank’s monetary policy trajectory. BLOOMBERG
