Gold soared to a two-month high as investors priced in decreases in price pressures. Gram gold, on the other hand, renewed the record in the morning and saw its new peak.
Gold rose to a two-month high, supported by signs that the Fed’s rate hike cycle is nearing its end.
Spot gold is trading at $1,980 an ounce. On the gram gold side, another record was broken in the morning hours.
Spot gold rose as much as 0.6 percent to its highest intraday level since May 17, after easing price pressures in the US and UK triggered reassessments on how much further central banks should tighten.
Investors have begun to loosen their aggressive bets on further rate hikes, which often have a negative impact on non-interest-yielding gold.
According the path to the Fed’s 2 percent target is likely to stretch, but inflation is falling. While swap investors are predicting a new rate hike next week, this move is heavily priced in for gold.
The precious metal, which is priced in dollars, has taken advantage of the currency’s decline this month, making it cheaper for buyers.
“Forward spot gold prices seem to have found a home in the $1,900-$2,000 region,” said Philip Nova Pte Analyst Priyanka Sachdeva.