Gold set a new record and silver hit a two-year high as two Federal Reserve members said they expect to cut rates three times in 2024 and Chairman Jerome Powell will speak later Wednesday.
Gold hit a new high above $2,288 an ounce and silver topped $26 an ounce. San Francisco Fed President Mary Daly and Cleveland counterpart Loretta Mester said three rate cuts are likely in 2024. Lower rates benefit metals.
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Gold is up nearly 11% this year on anticipation of US rate cuts. However, data indicating the stability of the US economy raises some doubts. Fed Chairman Powell will deliver a new outlook on policy. Employment data will also be scrutinized, according to a Bloomberg survey.
Geopolitical issues are also supporting gold, including tensions in the Middle East. Iran has accused Israel of carrying out an airstrike on its embassy in Syria. US President Joe Biden criticizes Israel for its military campaign against Hamas.
Gold and silver prices: gold – $2284.86 per ounce, silver – $26.5567 per ounce, the highest level since March 2022. Platinum and palladium also rose, while the Bloomberg Dollar Index remained stable.
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