Gold hits 7-month high, all-time highs within in reach
Precious metal continues to shine on prospects of lower rates next year.
Gold prices settled at $2,045 per ounce on Wednesday's close after hovering around that level for much of the day. The precious metal had reached a 7-month high of $2,052 earlier during Asian trading, buoyed by a weaker U.S. dollar and demand for Treasuries.
The yellow metal spiked yesterday after hawkish Federal Reserve official Christopher Waller said Tuesday the central bank may start cutting interest rates in 2024 if inflation continues to slow. His remarks boosted gold as dollar traders ran for the exits. bullion prices are up over 3% so far in November.
While technical indicators suggest the gold market is overstretched, there is further upside seen with a year-end target of around $2,080 and beyond. As the Fed's aggressive posture relaxes, gold is poised to continue its shine.
