The international gold price reached an all-time high on the 16th (local time) due to expectations of a US interest rate cut and escalating tensions in the Middle East.
According to major foreign media, the spot gold price rose 1.7% from the previous close to $2,498.72 per ounce at 2:27 PM (Eastern Time, US) that day. During the session, it surpassed $2,500 for the first time, reaching $2,500.99. The gold futures price recorded a 1.8% increase to $2,537.80.
The rise in gold prices is attributed to the increased possibility of a September interest rate cut by the US central bank, the Federal Reserve (Fed), and concerns over the escalation of the war between Israel and the Palestinian armed group Hamas in the Middle East.
Ty Wong, a metal trader in New York, said, "After two weeks of extremely volatile trading, buying momentum ultimately prevailed, pushing gold prices to an all-time high." He added that market attention will focus on Fed Chair Jerome Powell's speech at the Jackson Hole meeting, which is expected to provide a more detailed outlook on the form of the interest rate cut.
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