Tribal warfare kills at least 20 near Porgera mine in PNG, estimates UN
The mine was briefly forced to cease operations as the fighting intensified, according to media reports.
Gold prices set another record on Monday ahead of this week’s Federal Reserve meeting, during which the US central bank will assess its monetary policy for the first time in over four years.
Spot gold climbed as much as 0.5% to an all-time high of $2,589.70/oz. before pulling back to $2,579.89/oz. by 11:50 a.m. ET. Gold futures also hit a peak of $2,617.40/oz. before the US trading hours.
Bullion’s latest rally, which extends from last week, precedes the Fed’s Sept. 17-18 meeting that’s widely expected to result in a rate cut of at least 25 basis points.
Still, opinions are divided on the pace of the US central bank’s future easing path, with some traders and economists now expecting a larger, half-point reduction this week.
“Whether the Fed cuts by 25 or 50 bps does matter in the short term,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S, in a Bloomberg note.
The decision “may send a stronger signal” about how the Federal Open Market Committee “views the current economic outlook,” he added.
The precious metal was also supported by a weaker US dollar, which fell after an apparent assassination attempt against former President Donald Trump.
Gold has gained more than a quarter this year and last hit a record on Friday, supported by the Fed’s signals of a pivot to monetary easing. Central bank buying due to geopolitical tensions and retail interest has also helped its advance.
“A disunited world loaded up on geopolitical risks and debt will continue to underpin prices,” said Hansen.
(With files from Bloomberg)
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