Gold records a new peak supported by interest reduction proofs

Gold prices jumped to a new peak today, Tuesday, to remain higher by a large difference than the threshold of $ 3600, which they exceeded in the previous session, with a high demand for precious metal amid the weakness of the dollar and the decline in bond returns in light of the increasing bets on the reduction of the Federal Reserve (the US Central Bank) interest rates this month.

Gold rose in instant transactions 0.5% to 3653.25 dollars an ounce by 1120 GMT after he recorded its highest level ever at $ 3659.10 earlier in the session.

And US gold futures climbed, December delivery 0.4% to $ 3692.40.

Gold prices have risen approximately 39% since the beginning of the year, after a 27% jump in 2024, supported by the decline in the dollar and the increase in central banks of their purchases of yellow metal and a tendency to monetary facilitation and the increasing state of global uncertainty.

The dollar index decreased to the lowest level in almost seven weeks against the main currencies, making gold more attractive to other currencies, while the US Treasury Bonds returned for 10 years decreased to the lowest level in five months.

“In support of market expectations to reduce interest rates, Han Tan said,” The price of the market has been supported by the market, and it also helped the dollar’s decline in paving the road to reach $ 3,600 … and the purchases of central banks are added to the strong mixture of supportive factors, “said Han Tan, a chief market analyst in Nemo Dot Mane.

According to the CMI Group, dealers believe that there is a possibility of 88% to reduce interest 25 basis points at this month meeting and 12% to reduce large 50 basis points.

Low interest rates are pressed on the dollar and bond returns, which increases the attractiveness of the precious metal that does not generate returns.

Investors are now waiting for producers’ price data in the United States, which will be issued tomorrow, Wednesday, and consumer prices on Thursday to obtain more evidence of the Central Bank’s policy path.

As for other precious metals, silver increased in instant transactions 0.3% to $ 41.21 an ounce, platinum increased 0.9% to $ 1396.30, and palladium rose 0.4% to $ 1138.16.