(Bloomberg) — Gold’s record-setting rally above US$2,500 an ounce looks to have further to run as the U.S. Federal Reserve prepares to chop rates, traditional drivers such as lower yields return, and Western investors pile back in.
“Everybody thought the Fed was going to be the last to cut, but now they’re getting in line,” said Jay Hatfield, chief executive officer of Infrastructure Capital Advisors, who recently went long on gold options for the first time in years. Chair Jerome Powell’s Jackson Hole speech — which promised rate cuts — was a watershed moment for bullion, according to Hatfield.
Bullion has dazzled this year, setting a procession of records that marked out the precious metal as one of the strongest performers among major commodities. Its ascent in the first half came courtesy of strong central-bank buying plus Asian purchases, which offset the drag from a rising U.S. dollar, higher Treasury yields, and outflows from bullion-backed exchange-traded funds. Now all three of those drivers may run in gold’s favour.
For the rest of this article: https://www.bnnbloomberg.ca/business/international/2024/08/26/gold-bulls-celebrate-as-jackson-hole-reinforces-bets-on-rally/