Amid ongoing global geopolitical uncertainties and the U.S. Federal Reserve's interest rate cuts, international gold prices reached an all-time high on September 22 (local time).
On this day at the New York Mercantile Exchange, December gold futures closed at $3,775.10 per ounce, up 1.9% from the previous trading day. The spot price of gold was $3,747.08 per ounce at around 2 p.m. Eastern Time, rising 1.7% from the previous session. With this increase, both gold futures and spot prices set new all-time records.
The ongoing rally in gold prices has been attributed to the Federal Reserve's interest rate cuts. In the economic outlook released last week, Federal Reserve officials projected two more rate cuts within the year. Steven Myron, the newly appointed Federal Reserve governor and former economic adviser to President Trump, stated in a speech that the current U.S. benchmark interest rate remains about 2 percentage points above the neutral level, placing it in a restrictive zone, and emphasized the need for aggressive rate cuts as a monetary policy stance.
Jim Wyckoff, senior analyst at precious metals information provider Kitco Metals, said, "With geopolitical tensions such as the Russia-Ukraine war unresolved, demand for safe-haven assets continues to flow in," adding, "Last week's Federal Reserve rate cut and the outlook for further cuts are also factors supporting the price."
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