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Gold rallies 2% to fresh record highs
AI Summary
- Gold prices reached new record highs due to a decline in the dollar and US monetary policy expectations
- Federal Reserve Board Governor Stephen Miran suggested a sharp interest rate cut of around 2%
- St. Louis Fed President Alberto Musalem warned that last week's rate cut was a precautionary step with limited scope for further easing
Gold prices rose strongly during Monday’s trading to reach new record highs, amid a decline in the dollar against most major currencies and as markets assessed US monetary policy expectations.
Federal Reserve Board Governor Stephen Miran said in a speech today at the Economic Club of New York that interest rates should be cut sharply by around 2%, noting that the current level is “excessively restrictive” given recent economic changes.
In the same context, St. Louis Fed President Alberto Musalem warned that last week’s cut was a “precautionary step” and that there is limited scope for further easing.
Meanwhile, the dollar index fell against most major currencies at 20:09 GMT by 0.3% to 97.3, recording a high of 97.8 and a low of 97.3.
In trading, spot gold rose by 2% at 20:14 GMT to $3,780.40 an ounce.
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