” Gold Rate Today Int Market- March 7, 2024 ” | GNN INFO

Gold prices extended gains to hit an all-time high on Thursday after comments from Federal Reserve Chair Jerome Powell fostered expectations for lower U.S. interest rates this year.

Gold tends to rise when interest rates are low, which reduces the opportunity cost of holding non-yielding bullion.

Spot gold gained 0.4% to $2,157.51 per ounce, as of 1003 GMT. U.S. gold futures rose 0.3% to $2,165.20.

Bullion hit a record high of $2,161.09 earlier in the session and was on track for its longest intra-day winning streak since at least November 2021.

Powell said on Wednesday rate cuts will “likely be appropriate” later this year “if the economy evolves broadly as expected” and once officials gain more confidence in inflation’s steady deceleration. Powell will speak again on Thursday.

“The primary driver in this recent rally in gold is a continued decline in real yields, with inflation expectations continuing to cool, pushing buyers into gold from money market accounts and Treasuries,” said SP Angel analyst Arthur Parish.

Powell’s remarks, coupled with data released the same day indicating softer labour market conditions, pushed U.S. Treasury yields and the dollar lower, boosting demand for gold.

The near-time focus will be on European Central Bank’s rate decision, due at 1315 GMT, when the central bank is expected to keep interest rates unchanged at record highs.

Friday’s U.S. non-farm payrolls report for February is expected to provide more clarity on U.S. rate cuts. It is expected to show employers added 200,000 jobs during the month, according to economists’ polled by Reuters.

“A weaker-than-expected figure is likely to push gold closer to $2,200/oz in the spot market,” Parish said.

Spot silver was steady at $24.16, platinum climbed 0.9% to $915.60 per ounce, while palladium slipped 1.3% to $1,028.52, after a sharp rise in the last session.