Gold prices are poised for their best quarterly performance in over eight years, buoyed by the US interest rate cuts, despite a slight dip today. Spot gold fell 0.2% to $2,653.38 per ounce, as the dollar strengthened.
Gold prices have surged more than 14% this quarter, marking the best performance since January 2016. In September alone, gold rose 6%, hitting a record high of $2,685.42 last Thursday. The rally was fueled by a half-percentage-point rate cut in the US, economic stimulus in China, and ongoing concerns over the war in the Middle East.
“Last week, risk assets and gold emerged as the clear winners over the dollar in the financial markets race,” said Mohamed Hashad, Chief Market Strategist, Noor Capital. “This was fueled by recent economic data releases from the US, which reinforced the perception of price stability and strengthened the likelihood of continued interest rate cuts by the Federal Reserve at the same pace as the September cut.
“Key economic indicators–GDP and Personal Consumption Expenditure (PCE)–painted a positive picture of the US economy. These data points suggested that the Fed may maintain its current trajectory of easing monetary policy, a move that typically benefits risk assets like stocks and commodities.”
In other metals, silver dropped 0.4% to $31.49 per ounce, platinum dipped 0.1% to $999.35, while palladium edged up 0.1% to $1,012.50.
