When the US session started on August 16, the world spot price of gold shot up, setting a record of 2,494 USD an ounce. This occurred in the evening of August 16.
This surpasses the previous record of 2,483 USD set in the session on July 19, creating a new historical high. Following the release of statistics from the US Department of Commerce indicating that the number of new residences built in July fell 6.8% from the same month the previous year, gold prices increased. This pace exceeds the predictions of economists.
In addition, fewer new homes were constructed in June than were included in the prior report. Since buying a home has become more and more difficult for many Americans due to rising loan rates and high costs, housing continues to be a key growth impediment in the US.
The US previously reported that July saw a decline in the number of new applications for unemployment benefits, a stronger-than-expected gain in retail sales, and a cooling of inflation. The likelihood that the US Federal Reserve (Fed) will lower interest rates in September is further supported by these findings.
Since that gold does not pay fixed interest, the market for gold will profit from a low interest rate environment. Amidst the growing crises in the Middle East, there has also been a recent surge in the demand for refuge.
The price of gold rose 1.7% this week. At the end of the year, Commerzbank increased its prediction for the price of gold to 2,500 USD, citing “clear signals of interest rate reduction from the Fed.” The Fed is scheduled to issue the minutes of its July meeting next week. On August 23, Fed Chairman Jerome Powell will also deliver a speech about the forecast for the US economy.
The price of other precious metals rose in addition to that of gold. Right now, silver is up 0.1% to $28.37 per ounce. Platinum reached $958, up 0.24%. Palladium is now $929, a 0.5% rise in price.
