Bloomberg News: Gold Hits Fresh Record on Fed Rate-Cut Hopes as Silver Surges
Article by Jack Ryan and Sybilla Gross in Bloomberg News
Gold rose to a fresh record above $4,200 an ounce and silver surged, boosted by an escalation in US-China frictions and bets the Federal Reserve will cut interest rates twice more this year.
Bullion climbed as much as 1.8% to a peak of $4,218.29 on Wednesday. Spot silver advanced more than 3%, while availability of the metal in the London market remained tight. Silver had a volatile day on Tuesday, when prices surge to an all-time high above $53.55 an ounce.
Yields on US Treasuries fell to the lowest levels in months, after Fed Chair Jerome Powell signaled the US central bank is on track to deliver another quarter-point cut later this month. Lower yields and borrowing costs tend to benefit precious metals, which don’t pay interest.
Meanwhile, risk-off sentiment dialed up — boosting gold’s haven appeal — after President Donald Trump issued a fresh trade threat to China. The comments injected fresh tensions into the relationship between the world’s two largest economies, with Beijing vowing to retaliate after Washington threatened an additional 100% tariff on China last week.
In silver, the market has been gripped by a lack of liquidity in ......