Dubai, UAE – Gold prices rose by more than 2% in late trading, driven by traders reducing their bets and expectations regarding a US interest rate hike at the September meeting.
This followed hints from Federal Reserve officials that rates might remain unchanged if inflation continues to decline.
Gold saw strong gains in both spot and futures trading
Gold prices surged 2.3% in spot trading, reaching $4,488.54 per ounce by 2:04 PM EST (9:04 PM Baghdad time).
This followed an earlier session in which the precious metal touched its highest level since August 28.
Meanwhile, US gold futures also saw a strong gain of 2.8%, closing at $4,539.90 per ounce.
This came amid a surge in investor demand for safe-haven assets.
Christopher Waller’s statements and the faltering interest rate forecasts
These developments followed comments by Federal Reserve Chairman Christopher Waller,
who stated that if upcoming economic data confirms continued easing of inflationary pressures,
he would strongly favor keeping interest rates unchanged at the central bank’s next monetary policy meeting.
These comments led to a reassessment of market expectations for interest rates,
with traders projections for a rate hike at the September 15-16 meeting
falling to around 54%, compared to approximately 62% before the remarks.
This provided a significant boost to the precious metal, enabling it to recover
and make substantial gains in global markets.
