WASHINGTON (dpa-AFX) - Gold extended its uptrend to reach new record highs on Wednesday despite Federal Reserve officials sounding a cautious tone over the pace of future rate reductions.
Spot gold was marginally higher at $2,750.72 per ounce in European trade, while U.S. gold futures were up 0.2 percent at $2,765.15.
Bullion continued to attract safe-haven flows despite a stronger dollar and elevated bond yields.
The U.S. dollar index surpassed 104 mark amid easing expectations of aggressive Federal Reserve rate cuts and fears the U.S. may be heading toward fiscal collapse.
U.S. Treasury yields hovered near three-month highs as traders pondered the prospect of a Donald Trump presidency.
It is feared that Trump policies including tariffs and restrictions on undocumented immigration could increase inflation and keep interest rates relatively high for a longer-than-anticipated period.
Meanwhile, media reports suggest that BRICS members are exploring a new unified global digital currency to reduce their reliance on Western currencies and bolster their economic influence.
A currency backed by gold is touted as a viable alternative. The move is largely driven by recent global financial instability and aggressive U.S. foreign policies, which have intensified tensions.
Over 30 countries have expressed a desire to join the BRICS, Russian President Vladimir Putin said today addressing a meeting of the grouping.
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