Gold climbs to a 5-year high after hinting to cut US interest by Reuters

Business

© Reuters. Gold climbs to a peak more than 5 years after hinting to lower the US interest rate

(Reuters) – Prices rose 2 percent to their highest level in more than five years on Thursday after the Federal Reserve hinted at a possible cut in interest rates later this year, pushing the dollar lower and yields on US Treasuries to fall.

Spot gold rose 1.7 percent to $ 1382.70 an ounce by 0657 GMT, after hitting its highest level since March 17, 2014 at $ 1386.38 an ounce.

Gold in US futures futures jumped 2.8 percent to $ 1386.30 an ounce, after hitting its highest level since April 2018 at $ 1397.70 an ounce.

The Federal Reserve said on Wednesday it was ready to face growing global and domestic economic risks as interest rates begin to fall next month after its assessment of rising trade tensions and growing fears of weak inflation.

Lower interest rates reduce the opportunity cost for non-performing metal holders and negatively impact the dollar, reducing the cost of gold to investors from other currency holders.

Other precious metals also rose, surging 1.1 percent to $ 15.31 an ounce, up nearly three months, while platinum rose 0.6 percent to $ 815.84 an ounce.

It rose 1.1 percent to $ 1517.05 an ounce, hitting its highest level in 12 weeks.

(Prepared by Abdel Moneim Darar for the Arabic publication – edited by Moataz Mohamed)

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