Gold reaches an all-time high of $2,685, buoyed by China’s stimulus and Middle East tensions.
Despite strong US Dollar, Fed’s recent 50 bps rate cut fuels bullish sentiment for continued gains in Bullion.
US economic data points to a ‘soft landing’ scenario, keeping market optimism high for further Gold upside.
Gold hit a new all-time high of $2,685 on Thursday as the Greenback began to recover from earlier losses sustained in the Asian and European sessions. US data portrays a ‘soft landing’ scenario, while China’s stimulus and rising tensions in the Middle East boosted Bullion prices. At the time of writing, the XAU/USD trades at $2,670.
Sentiment remains positive as portrayed by US equities. US Treasury bond yields remained firm, with the 10-year T-note yielding 3.798%, up one basis point (bps), while the Greenback, as portrayed by the US Dollar Index (DXY), is flat at 100.91.
China’s news supports Gold’s upward move. The Politburo remains firm in stabilizing the real estate market, adding more fiscal stimulus after the People’s Bank of China (PBoC) lowered the 7-day reverse repo rates by 20 bps, bringing rates from 1.70% to 1.50%.
This and last week's 50 bps rate cut by the Federal Reserve (Fed) pushed the golden metal to print subsequent record highs as global central banks cut borrowing costs. Even though the US Dollar remained strong, expectations that the Fed would embark on an ‘aggressive’ easing cycle kept bulls riding the trend.
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