Gold prices hit a new historical high! Spot gold rose above $2640 for the first time in history, while futures rose above $2660
  fazzaco 2024-09-24 18:22:37
Description:The gold price has reached a new historical high, continuing its recent upward trend. The market\'s continued optimism towards the US interest rate cut has driven up the gold price, and more clues to be released this week are also highly anticipated.

The gold price has reached a new historical high, continuing its recent upward trend. The market's continued optimism towards the US interest rate cut has driven up the gold price, and more clues to be released this week are also highly anticipated.


After the Federal Reserve cut interest rates significantly last week, gold prices soared to record highs, and the expectation of further interest rate cuts has brought more upward space for gold. The mixed readings of purchasing managers' indices in several major economies, as well as the ongoing tensions in the Middle East, have also driven demand for gold.


In terms of industrial metals, after the Chinese government announced a series of stimulus measures, copper prices rose sharply. The stimulus measures have raised market hopes for the economic recovery of China, the world's largest copper importer.


As of 13:39 Beijing time (01:39 AM Eastern Time), the commodity market on Investing.com showed that spot gold prices rose by $6.84, or about 0.26%, to $2635.53 per ounce, and earlier rose to $2640.01; The price of gold futures rose by $7.75, or about 0.29%, to $2660.30/ounce, and earlier rose to $2664.40, both reaching historical highs.


Gold prices rise, market pays attention to more monetary policy clues from the Federal Reserve


Due to the expectation of interest rate cuts and optimistic trends in gold prices, we still need to pay attention to more clues from the Federal Reserve in the future market.


On Monday, several Federal Reserve officials stated that they support a 50 basis point rate cut last week, but expect the pace of rate cuts to slow down in the coming months. However, analysts from Citibank have stated that they expect to cut interest rates by at least 125 basis points by the end of the year.

This week, there were more speeches by Federal Reserve officials, with the most notable being the speech by Federal Reserve Chairman Jerome Powell on Thursday.


This week's focus also includes the release of the Federal Reserve's most favored personal consumption expenditure (PCE) price index data on Friday, with analysts expecting inflation in August to remain above the Fed's target range.


Interest rate cuts generally benefit gold as they lower the opportunity cost of investing in non interest bearing assets. The decline in US dollar and treasury bond bond yields caused by interest rate cuts also further boosted gold.


Copper prices rise due to China's stimulus measures

The benchmark copper futures price on the London Metal Exchange rose 1.6% to $9702.50 per ton, while the one month copper futures price in the United States rose 2.1% to $4.4380 per pound.


On Tuesday, China announced a series of stimulus measures, with the most prominent being a 50 basis point reduction in the bank reserve requirement ratio and a lowering of existing mortgage interest rates.


These measures have enhanced people's hope for improved economic growth in the world's largest copper importing country, thereby driving its demand for copper.


However, a series of mixed purchasing managers' index (PMI) readings worldwide have suppressed the upward trend in copper prices, indicating a decline in manufacturing activity.


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