PRECIOUS METALS - Gold futures rose to 2,630.30 dollars
Istanbul, September 20 (Hibya) - Spot gold was up 0.7 percent at 2,605.50 dollars per ounce, while U.S. gold futures rose 0.6 percent to 2,630.30 dollars on Friday, extending a rally boosted by bets for further U.S. interest rate cuts and rising tensions in the Middle East.
Silver gained 0.5 percent to 30.93 dollars while platinum fell 1.1 percent to 974.76 dollars and palladium shed 1.7 percent to 1,062.25 dollars.
Bullion’s latest rally got a fillip after the Federal Reserve initiated an aggressive easing cycle on Wednesday with a half-percentage-point reduction, adding to the appeal for gold, which pays no interest.
Prices of the safe-haven asset have climbed 26 percent in 2024, its biggest annual rise since 2010, as investors also sought to hedge uncertainties spurred by prolonged conflicts in the Middle East and elsewhere.
Analysts said the record rally could be poised for a correction. “Clearly, there’s still some buying activity associated with the Fed’s decision to begin their easing cycle with a big cut.”
It “should not go on forever,” Commerzbank said in a note, citing the expectation for rate cuts of only 25 basis points each at the Fed’s next two meetings. Still, some analysts said gold could see more upward spikes.
Analysts said that continued weakness in the dollar, which makes gold cheaper for holders of other currencies, offered additional tailwinds.