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Wednesday's gold prices were heading towards the highest level and the longest streak of victories in more than a year, as the prospect of a rate cut by the Federal Reserve due to signs of economic weakness at United States was added to the purchase of bullion.
Gold for the August delivery on Comex
GCM19, + 1.07%
rose $ 19.30, or 1.5%, to $ 1,348.30 an ounce, which would represent the largest reconciliation for a most active contract since April 2018, according to data from FactSet. The precious metal is on track for its sixth consecutive win, which would be the longest winning streak since an 11-day rally that ended on January 5, 2018.
Gold is expected to record an advance of nearly 5.2% on a cumulative basis and a 2.8% increase since the beginning of the month.
"The bullion rally is also strongly supported by the Fed's attention to whether and when to reduce interest rates, which paves the way for a significant reversal of the dollar. .
Precious metal prices rose Wednesday after the release of a report on private sector employment released in May by ADP, an employer that hired 27,000 people in March, representing the lowest level since March 2010.
Meanwhile, July money
SIN19, + 1.29%
added 21 cents, or 1.4%, to $ 14,865 an ounce.
The recovery of precious metals comes as trade tensions between the United States and their international counterparts have led Federal Reserve Chairman Jerome Powell to suggest that a reduction in the interest rate may be appropriate if tariff disputes weakened economic growth.
Lily: Powell said the Fed was monitoring the impact of trade tensions on the economic outlook
The prospect of lower borrowing costs has kept the dollar under control and helped yields on 10-year Treasury bills
TMUBMUSD10Y, -1.71%
at 2.09%, which favors gold purchases.
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