Gold hit its highest level since May, while copper also went up due to recent statements from Federal Reserve officials suggesting possible interest rate cuts by the US central bank. In India, gold prices reached an all-time high of $62,600.
Federal Reserve Governor Christopher Waller’s remarks hinted that the policy is focused on getting inflation back to the targeted 2%, possibly delaying any rate hikes. Governor Michelle Bowman expressed readiness to raise rates if inflation slows, but didn’t clearly support an immediate increase.
As Treasury yields and the dollar continued to drop, gold reached $2,043.04 per ounce, the highest since May 10. Copper on the London Metal Exchange also rose by up to 1.4%.
Investment funds showed strong confidence in gold, with increased positive bets marking the highest level in almost four months in futures and options, as per the latest data. Exchange-traded funds stopped losing value after months of decline.
Major gold company shares, including Newmont Corp. rising by 6.3%, Anglogold Ashanti Plc by 8.2%, and Barrick Gold Corp. by 5%, showed gains. Silver prices crossed $25 an ounce for the first time since August.
Copper’s rise was also influenced by news from Panama’s top court overturning a law related to First Quantum Minerals Ltd., causing uncertainty over a major copper operation. This news tightened the gap between the copper cash contract and the three-month futures.
At New York’s closing, spot gold went up by 1.3% to $2,040.55 per ounce, while copper on the LME settled at $8,473.00 per metric ton, showing a 1.3% increase.
The movements in these precious metals reflect changing opinions about the Federal Reserve’s future actions in shaping monetary policy.
