Credited: Business Times
Gold hit a record high on Wednesday, boosted by a softer U.S. dollar and hopes of more interest rate cuts, while investors looked for new signals for the Federal Reserve's interest rate trajectory.
Spot gold was steady at US$2,658.08 per ounce, as of 0557 GMT, after hitting an all-time high of US$2,670.43 (RM11,025) earlier.
U.S. gold futures gained 0.2 per cent to US$2,682.10. The dollar eased 0.2 per cent, making greenback-priced bullion less expensive for other currency holders.
On Tuesday, China announced a slew of support measures including outsized rate cuts, after the U.S. Fed cut rates by 50 basis points last week. Market participants see about 60 per cent chance of another 50 bps cut in November.
The short-term bullish trend remains intact, with resistance at US$2,690 level, followed by another level at US$2,710, Wong said.
Zero-yield bullion tends to be a preferred investment in a low-rate environment. Meanwhile, Fed Governor Michelle Bowman said key measures of inflation remain "uncomfortably above" the Fed's 2 per cent target, warranting caution as the central bank proceeds with trimming rates.
Traders await Fed Chair Jerome Powell's remarks on Thursday and U.S. inflation data on Friday for further policy cues.
Elsewhere, Israeli airstrike in Beirut killed a senior Hezbollah commander on Tuesday, heightening fears of a full-scale war amid increasing cross-border rocket attacks between both sides.
Inflows to gold exchange-traded funds, particularly from Western investors, will rise in the coming months, providing further support for record-high bullion prices, analysts said.
Spot silver fell 0.9 per cent to US$31.85 per ounce, platinum was down 0.4 per cent to US$981.93 and palladium shed 1.3 per cent to US$1,042.90.
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