Weir Group awarded £53 million flowsheet contract for Reko Diq project
Reko Diq represents one of the largest copper-gold development projects in the world.
Gold resumed its rally to hit another record on Tuesday ahead of a speech by Federal Reserve Chair Jerome Powell that would shed clarity on potential interest rate cuts this coming month.
Spot gold was up 0.8% to $2,525.50 per ounce by noon EDT, after setting an all-time high of $2,531.62 earlier. US gold futures had a more modest gain of 0.3% at $2,549.10 per ounce.
The latest rally takes bullion’s gain this year to more than 22%, as investors grow more confident of a Fed rate cut starting in September. This Friday, Powell will speak at the annual Jackson Hole symposium in Wyoming, which will paint a clearer picture of the central bank’s plans.
“Gold remains in record-setting mode ahead of Powell’s Jackson Hole speech,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said in a Bloomberg note.
“With the dollar and yields not providing much inspiration today, the main driver is the current positive momentum and limited selling appetite basically leaving the path of least resistance to the upside,” he added.
Traders will also be monitoring other US reports due this week, including jobless claims figures on Thursday, which could inform the market about the Fed’s monetary easing plans.
Gold’s rally has also been supported by robust purchasing by central banks as well as haven demand amid ongoing conflicts in the Middle East and Ukraine. There’s also been healthy buying of physical bars in the over-the-counter market.
“We expect the gold price to continue to rise in the first half of 2025 due to further Fed interest rate cuts, a US inflation rate that remains above target and a weaker US dollar,” Commerzbank AG commodity analyst Carsten Fritsch wrote in a report.
That said, the German bank doesn’t “expect gold to make any further gains for the time being.”
UBS Global Wealth Management’s Wayne Gordon is also bullish about the yellow metal’s prospects, saying prices are heading toward $2,700 an ounce by around the middle of next year.
(With files from Bloomberg)
Comments