Gold about to trade above $2500 for first time in history

Gold prices rose in European trade on Wednesday on track for the third profit in a row, hitting a fresh record high and about to trade above $2500 for the first time in history as US 10-year treasury yields swooned. 

The odds of US interest rate cuts in September and November surged to 100% this week after less aggressive remarks by Fed Chair Jerome Powell.

Prices 

Gold prices rose 0.55% today to $2482 an ounce, a record high, with a session-low at $2461. 

On Tuesday, prices rose 1.9%, the second profit in a row, and the largest such profit in 2024. 

US Yields 

US 10-year treasury yields fell 0.2% on Wednesday on track for a second decline in a row, plumbing four-month lows at 4.156% and buoying non-yielding assets. 

Powell 

Fed Chair Jerome Powell said in an earlier speech in Washington that latest consumer prices data bolsters confidence that inflation is returning to the 2% target sustainably, with three consecutive readings presenting better than expected results. 

Following the remarks, the odds of a 0.25% September rate cut by the Federal Reserve rose to a full 100% according to the Fedwatch tool, with a similar 100% likelihood of a rate cut in November. 

Now investors await a host of speeches and remarks by several Fed officials later today to get more clues about the future of monetary policy.

The SPDR 

Gold holdings at the SPDR Gold Trust rose 5.49 tonnes yesterday, the second increase in a row, and the largest since July 2, to a total of 842.02 tonnes, a February 8 high.