Gold Prices Climb To Fresh Record High

Gold prices continued to soar on Tuesday, hitting a new all-time high for the third consecutive trading session amid reports of China planning to become a custodian of foreign sovereign gold reserves. Spot gold prices climbed to a new high of $3,791 per troy ounce, surging by over 1%.

According to a report by Bloomberg citing people familiar with the matter, the People’s Bank of China is courting central banks in friendly countries through the Shanghai Gold Exchange to buy gold and store it in China.

Traders are also eyeing Federal Reserve Chair Jerome Powell’s speech on Tuesday for clues on the central bank’s monetary policy going forward. Gold futures maturing in December surged 1.07% to hover around $3,815 at the time of writing.

Silver prices also soared on Tuesday, climbing to a 14-year high. Spot silver prices were up 0.5% at the time of writing, hovering at $44.28 per ounce. "I would expect gold to reach new record highs this week with Fed officials likely to indicate further rate cuts, but also being data dependent on the pace and magnitude of cuts," said UBS analyst Giovanni Staunovo, according to a Reuters report.

According to the CME FedWatch tool, there is a 91.9% probability of a 25-basis-point rate cut in October.

Meanwhile, U.S. equities were mixed in Tuesday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.01%, while the Invesco QQQ Trust (QQQ) edged up by 0.02%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

The SPDR Gold Shares ETF (GLD) was up 0.85% at the time of writing, while the iShares Gold Trust ETF (IAU) was up 0.88%. The GLD and IAU ETFs have both surged nearly 43% year-to-date.

Also See: Dow Futures Gain Ahead Of Jerome Powell’s Speech: BA, HOLO, BETR, CLSK Among Stocks To Watch

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