As the dollar and Treasury rates declined in response to remarks made by the chair of the Federal Reserve that suggested an interest rate cut in September, gold prices increased by more than 1% on Friday. Although it was down from Tuesday’s record high of $2,531.60, spot gold increased 1.2% to $2,512.63 per ounce. US gold futures closed at $2,546.30, up 1.2%.
Zero-yield bullion is more appealing when U.S. interest rates are lower. According to the head of commodities strategies at TD Securities, gold may be overpriced on the long side, and selloffs and profit-taking are possible.
In September, traders anticipate a 59.5% possibility of a 25 basis point reduction, while 40.5% predict a more substantial 50 basis point reduction. Palladium increased 2.6% to $956.69 while platinum gained 1.8% to $961.01.
Silver increased 2.9% to an ounce of $29.83, bringing its weekly gain to around 2.7%. Leading importers predicted that India’s silver imports will almost triple this year due to growing demand from solar panel and electronics manufacturers.
