Gold prices continued their upward trajectory for a fifth consecutive session on Thursday, reaching their highest level in over three weeks. Spot gold hit $4214.52 per ounce in intraday trading, fueled by growing expectations of further interest rate cuts by the US Federal Reserve following the recent government shutdown.
US gold futures for December delivery also experienced gains, climbing to $4218.20 per ounce. Earlier in the session, prices faced slight headwinds from a strengthening US dollar, briefly dipping to $4194.63 per ounce.
According to Jijar Trivedi, senior research analyst at Reliance Securities, gold’s ongoing gains are primarily driven by a weakening dollar, anticipated interest rate cuts by the Federal Reserve, and the continued trend of central banks increasing their gold reserves.
“The combination of a softer dollar and the expectation of more accommodative monetary policy from the Fed is creating a favorable environment for gold,” Trivedi noted.
The rise in gold prices reflects a broader trend in the precious metals market. Silver also saw significant gains, rising by 1.3% to $54.11 per ounce. Platinum remained relatively stable at $1614.92 per ounce, while palladium experienced a 0.5% increase, reaching $1481.08 per ounce.
Analysts are closely monitoring upcoming economic data and Federal Reserve communications for further clues regarding the future direction of interest rates, which are expected to play a significant role in shaping the outlook for gold and other precious metals in the coming weeks.
