The start of this week saw the price of gold surge to a new high, bolstered by a weakening dollar and increasing expectations of rate cuts by the Fed. The precious metal’s price hit $4,241.27 an ounce, its highest level since October. Gold futures for February also rose to $4,274.80 an ounce.
Silver also saw its price increase, hitting $58.57 an ounce and marking a more than 100% increase in its price. Analysts note that both metals have been buoyed by the same macroeconomic forces shaping investor expectations.
At the same time, the greenback dipped to a 2-week low, which made gold more affordable for holders of foreign currencies and further lifted demand. According to High Ride Futures’ Director of Metals Trading, David Meger, the rally observed in the two metals is being driven primarily by anticipation of reductions in rates of interest. This typically makes non-yielding assets like gold more attractive.
Rate-cut expectations have intensified following dovish remarks from officials of the Federal Reserve like Governor Christopher Waller, as well as the release of softer economic data. Traders now place the probability of a rate cut this month at 87%, reflecting a broader belief that the Fed may be nearing an easing cycle. Lower rates tend to weaken the dollar, reduce bond yields, and increase the appeal of safe-haven assets.
This week, investors are closely watching upcoming economic releases, particularly the Federal Reserve’s preferred inflation gauge, September’s PCE Index, and November employment figures. Both indicators are expected to influence the Fed’s tone in upcoming meetings.
Meger adds that expectations that the next chair of the Federal Reserve may be more dovish than prior ones is further supporting silver and gold’s performance. It is expected that a new chair may be appointed before Christmas.
This comes after Kevin Hassett, current economic adviser of the White House, expressed his willingness to serve in the role if appointed, adding another layer of uncertainty to the market outlook.
While gold and silver posted gains, other precious metals struggled. For instance, palladium saw its price drop to $1,431.52, representing a more than 2% decline. Platinum’s price also dropped to $1,660.69, marking a 0.7% decline.
Analysts suggest that unlike gold, which benefits directly from shifts in monetary policy, these metals remain more sensitive to industrial demand, which has softened amid global economic slowdown concerns. Overall, the combination of a weaker dollar and heightened expectations of monetary easing have created a supportive environment for gold, pushing prices to new highs and highlighting its role as a preferred safe-haven asset in times of uncertainty.
Companies like Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) continue to enjoy the benefits that come with the heightened investor interest in gold that has persisted throughout the year.
NOTE TO INVESTORS: The latest news and updates relating to Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) are available in the company’s newsroom at https://ibn.fm/ATBHF
About MiningNewsWire
MiningNewsWire (“MNW”) is a specialized communications platform with a focus on developments and opportunities in the Global Mining and Resources sectors. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled recognition and brand awareness.
MNW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from MiningNewsWire, text “BigHole” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.MiningNewsWire.com
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
MiningNewsWire
Los Angeles, CA
www.MiningNewsWire.com
310.299.1717 Office
Editor@MiningNewsWire.com
MiningNewsWire is powered by IBN
