Voice of the Emirates – Gold continued its strong gains on Tuesday, recording its biggest daily jump since May. This came amid growing expectations of a US interest rate cut, especially with the end of the longest government shutdown in US history approaching.
The precious metal rose to around $4,140 an ounce, having jumped 2.9% in the previous session. By 11:26 a.m. Singapore time, it had risen further by 0.7% to $4,144.08 an ounce.
Gold, which does not pay interest, is benefiting from market expectations of further monetary easing measures from central banks. These gains coincide with expectations that the US Senate will approve a bipartisan agreement to end the government shutdown in Washington. The agreement has the support of US President Donald Trump, meaning the government could resume operations within days.
Analysts suggest that the resumption of government operations will allow for the release of delayed economic data, which will be a crucial test of the economy’s resilience. These figures could provide further impetus for monetary easing, a factor that would directly benefit gold prices.
In the long term, investors remain bullish on gold prices. This is supported by strong demand from central banks and increased private investment in the precious metal. Other metals also posted gains. Silver, platinum, and palladium rose in tandem with gold. The Bloomberg Dollar Spot Index rose 0.1%.
