Gold on Thursday looked to stretch its gains to a third consecutive session, as recent remarks by Federal Reserve Chairman Jerome Powell were seen signaling a rate cut remains likely at the end of the month.
Gold for August delivery on Comex GCQ19, +0.08%[1] rose $3.40, or 0.2%, to $1,415.90 an ounce. Prices for the most-active contract are trading at their highest since July 3, when they settled at $1,420.90—their highest since May 2013. September silver SIU19, -0.11%[2] was up 1.4 cents, or about 0.1%, at $15.24 an ounce.
“Bullish forces have returned in force with the presence of a ‘Fed put’ providing the most significant buying impetus” for gold, analysts at Zaner Metals said in daily commentary. “In fact, the Fed was definitively more dovish than anticipated and the odds of additional cuts beyond the widely anticipated August 1st cut have been expanded.”
Also, “Given the wide-ranging comments from the U.S. Federal Reserve Chairman yesterday regarding the global economy, one could suggest gold will also see economic uncertainty buying ahead,” the analysts said.
Read: Fed minutes of June meeting bolster Powell’s signal of imminent interest-rate cut[3]
In his prepared remarks Wednesday[4], Powell said the economy hasn’t improved since June and the central bank is prepared to act as needed to support demand. Powell is testifying on Capitol Hill for a second day Thursday, appearing before the Senate Banking Committee.
Powell’s...