(Sept 24): Gold prices surged to a record high on Tuesday as a cocktail of factors, from hopes of further US rate cuts and China stimulus measures to elevated Middle East tensions, lifted demand.
Spot gold steadied at US$2,628.63 per ounce as of 0903 GMT after hitting a record high of US$2,639.95 earlier in the day.
US gold futures were flat at US$2,653.30.
Bullion scaled multiple record-highs after the US Federal Reserve cut interest rates last week by a larger-than-usual 50 basis points. Bank of Chicago president Austan Goolsbee said he expects many more cuts over the next year.
“The possibility of another 50 bps cut at the next Fed meet and China’s measures are lifting gold prices. There is always a risk of price correction but it might be small as investors who missed out on the rally will use it as an opportunity to add exposure,” said UBS analyst Giovanni Staunovo.
China’s central bank unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk.
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