Gold Prices Near Record High: Investors Cautious

Gold Prices Nearing Historic High

Gold prices are close to their historic highs this week, despite declining against a backdrop of uncertainty shaped by positive economic data from the US and differing views on interest rate cuts from Fed officials.

Gold Bullion Hovering Around $3,745

Gold bullion is trading just $50 below the record high seen on Tuesday, nearing $3,745. Prices fell on Wednesday as new home sales in the US rose at the fastest pace since early 2022 in August against expectations. That eased some concerns about a slowdown in the world's largest economy.

Dollar Rise Impacts Gold Prices

The dollar hit a two-week high, making gold more expensive for most buyers.

Fed Officials and Investor Expectations

Investors are carefully weighing statements from US officials. On Wednesday, Treasury Secretary Scott Bessent expressed disappointment that Fed Chairman Jerome Powell did not lay out a clear roadmap for rate cuts. Earlier in the week, Powell had reiterated that a cautious approach was necessary in the face of a weakening labor market and the risk of higher inflation.

Investors Waiting for Friday

Investors will keep an eye on the US personal consumption expenditure price index, which will be released on Friday.

As of 07:50 am in Singapore, spot gold was up 0.2% to $3,743.09 an ounce. It was down 0.7% on Wednesday. The Bloomberg Dollar Spot Index fell 0.1% after rising 0.6% the previous day. Silver and platinum prices were little changed, while palladium prices rose.