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Powell's speech underscored that despite concerns over inflation, the broader economic policy remains steady, signaling potential interest rate cuts later this year. Spot gold experienced a 0.5% increase, hitting $2,292 per ounce, while the June contract surged by 1.63% to $2,319, marking a new pinnacle.
Independent metals trader Tai Wong, based in New York, commented on the surge, stating, "Gold surged to another all-time high on increased trading volume after Powell emphasized that the 'bumps' in the road are not changing the overall rosy picture." Wong emphasized that Powell's typically cautious approach failed to deter gold bulls, who have long anticipated reaching the $2,300 mark. He elaborated, "Powell's usual cautious approach does not worry the gold bulls," highlighting their eagerness to see gold prices ascend.
Wong further noted, "Bulls wanted to see gold at $2,300."
Year-to-date, gold prices have soared by over 11%, reflecting investors' optimism amidst uncertain economic conditions. However, the looming uncertainty surrounding the Federal Reserve's upcoming meeting on June 11-12 persists, particularly in light of recent robust economic data that may influence monetary policy decisions.
In tandem with gold's historic surge, other precious metals also experienced notable gains. Silver rose significantly, reaching a two-year high at $27.16 per ounce, marking a 4.7% increase. Copper saw a substantial gain of 3.5%, reaching $4.21, while platinum rose by 1.8% to $951. Palladium also witnessed an uptick, adding 2.2% to reach $1,026 per ounce.
Investors remain vigilant as they await further developments, particularly regarding the Federal Reserve's potential rate cut, amidst evolving economic indicators. The recent surge in gold and other precious metals underscores the ongoing volatility and uncertainty in global markets, prompting investors to closely monitor economic policy shifts and their impact on commodity prices.
By fLEXI tEAM