Gold prices are holding steady today after rising for three consecutive days, supported by expectations of further monetary easing in the United States. Bullion is trading slightly around $4,280 per ounce, after gaining 1.2% in the previous session. The Fed recently cut interest rates and opened up the possibility of additional cuts next year, while the swaps market is even betting on two cuts by 2026, although the central bank has only signaled one. This low interest rate environment is a significant factor in reviving interest in the precious metal.

The supporting factors for gold don't stop there. The Fed plans to begin purchasing $40 billion in US government bonds per month to bolster reserves in the financial system, potentially increasing liquidity and supporting safe-haven assets like gold. So far this year, gold has surged more than 60%, while silver has more than doubled. Both are on track for their best annual performance since 1979, driven by central bank purchases and investor outflows from bonds and currencies.

Data from the World Gold Council shows that gold holdings in ETFs have risen almost every month this year, except May, indicating continued strong investment interest. Meanwhile, silver traded near a record high after briefly touching $64.31 an ounce, supported by surging demand and tight supply. At 7:30 a.m. Singapore time, gold was trading at $4,280.34 an ounce, with silver down 0.1% at $63.51, while platinum and palladium also weakened slightly. The Bloomberg Dollar Index was flat after closing down 0.3% earlier, thus not putting additional pressure on gold. (az)

Source: Newsmaker.id