Gold has reached a historic milestone, hitting $2,500 per ounce in the global market.

 

Gold prices eased on Monday but remained close to the historic $2,500 mark as traders took profits following bullion’s peak in the previous session. Spot gold fell by 0.2 percent to $2,503.10 per ounce as of 0724 GMT, while US gold futures rose by 0.2 percent to $2,541.50. The metal had surged to an all-time high of $2,509.65 on Friday, driven by expectations of a US interest rate cut next month, along with rising geopolitical tensions and strong central bank buying, which have pushed gold up over 20 percent this year. Read More

 

"Gold has been targeting the $2,500 level for months, and now that it has reached this milestone, we are seeing some natural profit-taking," noted Tim Waterer, chief market analyst at KCM Trade.

Recent strong US retail sales, lower-than-expected unemployment claims, and modest inflation data have bolstered confidence in the US economy. Traders are anticipating a rate cut by the Federal Reserve next month, focusing on the potential magnitude of the reduction. According to the CME FedWatch tool, there is a 75.5 percent chance of a 25-basis-point cut. Read More

 

"Traders will be watching Jerome Powell's speech at Jackson Hole on Friday for further insights," Waterer added. The market will also look to the Fed's July policy meeting minutes, set to be released on Wednesday, for additional clues. Read More

 

Analyst Kyle Rodda from Capital.com predicts that a slowing US economy, potential rate cuts, lower yields, a weaker dollar, persistent geopolitical risks, and strong central bank demand will drive gold prices higher in the long term.

 

Meanwhile, several Chinese banks have received new gold import quotas from the central bank, indicating anticipated demand despite record prices. Read More

 

In other precious metals, spot silver increased by 0.4 percent to $29.11 per ounce, platinum remained nearly unchanged at $954.65, and palladium dropped by 0.7 percent to $944.43. Read More