On Thursday, gold prices surged amid softening dollar and Treasury yields as growing bets on interest rate cuts ahead of inflation data.
In the Asian afternoon session, gold futures for August contracts rose by 0.26% to $2,385.90 per troy ounce. The yellow metal spot price increased by 0.41% to $2,381.09 an ounce.
According to reports, the bullion has remained to take some gains this week, supported by reports that various central banks were boosting their stocks in the precious metal.
Moreover, dovish-leaning remarks from the Federal Reserve (Fed) Chair Jerome Powell have favored gold to climb.
Meanwhile, the bullion was trading less than $100.00 from its record high amid Powell’s signaled improvement regarding inflation pull-down in recent months.
He also noted that the central bank did not require inflation to drop below the 2.00% target to start reducing rates. However, the regulator needed more signs that inflation was cooling.
Powell’s comments have influenced the current market and sparked traders to maintain their bets on September rate cuts.
Furthermore, the Fed Chair’s comments have shaken the dollar, and focus has turned to the looming consumer price index data, which is due later.
TD Securities Expects Gold to Surge in the Upcoming Weeks
TD Securities anticipates gold’s advance in the succeeding weeks, with the central bank buying and more clarity over US interest rate cuts supporting the bullion.
The leading investment bank also noted that the yellow metal could hit its Q1 2025 average target of $2,475.00 an ounce.
Meanwhile, gold has been sluggish this week after reports that the People’s Bank of China halted buying the precious metal for two consecutive months in June. This hindered the yellow metal’s rally last week, as weak US nonfarm payrolls increased bets over lower interest rates.
However, TD noted that the bullion was boosted by data indicating the Reserve Bank of India, the National Bank of Poland, and the Czech National Bank were all buying gold this week.
