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GOLD prices held steady on Thursday (Jul 18) after hitting a record peak in the previous session amid rising expectations of a US rate cut in September.
Spot gold was little changed at US$2,459.47 per ounce, as at 0051 GMT. Prices hit an all-time high of US$2,483.60 on Wednesday. US gold futures rose 0.1 per cent to US$2,462.50.
Top Federal Reserve officials said on Wednesday the US central bank is “closer” to cutting interest rates given inflation’s improved trajectory and a labour market in better balance, remarks that set the stage for a first reduction in borrowing costs in September.
Markets expect a 25 basis points reduction at the Fed’s September meeting, according to CME’s FedWatch Tool. Lower interest rates put pressure on the US dollar and bond yields, which increases the appeal of non-yielding bullion.
US economic activity expanded at a slight to modest pace from late May to early July with firms expecting slower growth ahead, a Fed survey showed.
Meanwhile, the European Central Bank is all but certain to keep interest rates unchanged on Thursday while signalling that its next move is still set to be a cut, even if this guidance is likely to be vague and carry caveats.
Spot silver rose 0.1 per cent to US$30.33 per ounce, platinum steadied at US$994.40 and palladium gained 0.8 per cent to US$958.99. REUTERS
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