New Record High in Gold at $2,500 As US Housing Suffers
After surpassing July’s peak of $2,483.74, gold (XAU/USD) surged to a new all-time high of $2,500 on Friday. This increase was driven by a weakening US Dollar, as well as a decline in U.S. housing starts and building permits, coupled with rising expectations that the Federal Reserve may lower interest rates, which would further support gold prices.
Gold continues to be bought on every dip, signaling strong buyer control and suggesting that Friday’s breakout may continue. A key driver behind the rising gold prices is the growing global demand for the metal. In India, physical gold purchases have seen a slight uptick due to price corrections, while increasing premiums in China highlight the growing demand for gold as a safe-haven asset.
Gold Chart Daily – The Trend Has Slowed but Remains Bullish
Additionally, U.S. economic data reflects ongoing uncertainty, particularly in sectors like housing, which continues to weaken under the pressure of elevated Federal Reserve rates, keeping mortgage rates high. Earlier today, both July housing starts and building permits reported declines, reinforcing concerns about economic stability.
The U.S. CPI consumer inflation rate dropped below 3% last month, raising market expectations for the Federal Reserve to cut interest rates in next month’s meeting. The housing market is also facing increasing challenges, and Fed Fund Futures are now pricing in a notable 100 basis points of rate cuts by the end of 2024. As a result, the record high was surpassed on Friday, with the new record high at $2,509.70.
US Housing Starts and Building Permits for July
Gold Live Chart
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals