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Gold Prices Surge Amidst Fed Rate Cut Expectations
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Gold prices surged, nearing a record high. Investors bet on a Federal Reserve rate cut in September. Spot gold rose 0.7% to $2,438.83 per ounce. Futures climbed 0.6% to $2,443.80.
The Fed's potential rate cuts and softer inflation data boosted gold's appeal. The dollar's weakness also helped. Market expectations include three quarter-point rate cuts this year.
Central banks' gold purchases hit a 50-year high. Geopolitical risks and doubts about USD and EUR safety drive this demand. However, Chinese gold demand remains weak.
Gold mining stocks rallied. The VanEck Gold Miners ETF gained 1.2%. Harmony Gold and Gold Fields shares rose 6% and 4% respectively. DRDGold shares jumped over 5%.
Investors see gold as a safe haven. The market's quick rally on soft U.S. data and dovish Fed expectations reflects this sentiment. UBS strategist Joni Teves sees upside risks for gold prices.
| Scores | Value | Explanation |
|---|---|---|
| Objectivity | 6 | Comprehensive reporting with in-depth analysis. |
| Social Impact | 4 | Strong social discussion, influencing some public opinion. |
| Credibility | 5 | Solid evidence from authoritative sources. |
| Potential | 5 | Very high potential to trigger significant changes. |
| Practicality | 4 | Highly practical, applicable to real problems. |
| Entertainment Value | 3 | Some entertainment value, attracts a portion of the audience. |