Ramp Metals stock surges on Sprott backing for Saskatchewan project
Ramp compares its project with the eye structure of the Nova-Bollinger nickel-copper mine in Western Australia.
Gold steadied after setting another record on Wednesday as traders upped their bets on Federal Reserve rate cuts while weighing the uncertain political outlook in the US.
Spot gold climbed to an all-time high of $2,483.73 an ounce before paring gains. By 12:45 p.m. ET, it had retreated to $2,455.71 an ounce. US gold futures are also down slightly at $2,460.70 per ounce.
Gold rallied as much as 1.9% on Tuesday to surpass a record high set in May as traders piled into bets for more aggressive rate cuts from the Fed amid increasing signs that inflation is cooling toward the central bank’s target.
On Wednesday, Fed Governor Christopher Waller said the economy is getting closer to a point where the central bank can reduce borrowing costs, but indicated he’d like to see a “bit more evidence” inflation is on a sustained downward path.
Waller adds to a growing list of officials who have signalled that they are moving closer to cutting rates, though most — including Fed Chair Jerome Powell — have stopped short of offering guidance on the exact timing of such a move.
Gold has soared nearly 20% this year, supported by large purchases from central banks, strong consumer appetite in China and demand for haven assets amid geopolitical tensions. Momentum-focused players are re-emerging as a key driver of gold amid a more bullish environment.
“The fundamentals have clearly shifted to offer investors increased reasons to re-weight gold holdings in the portfolio, and this has led to price-sensitive funds chasing the upside,” Chris Weston, head of research at Pepperstone Group Ltd. said in a Wednesday note. “With broad-based positioning and sentiment not near extremes, $2,500 could well be tested soon enough.”
Still, there are signs that the rally is overextended. Gold’s 14-day relative-strength index was hovering around 70, a threshold that some investors consider as overbought, according to Bloomberg.
(With files from Bloomberg)
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