August 16, 2024 – Gold prices surged to a historic high of $2,500.16 per ounce today, driven by expectations of upcoming U.S. interest rate cuts and increased geopolitical risks. The record-breaking figure reflects growing investor confidence in gold as a safe-haven asset amid economic uncertainties.
According to Fawad Razaqzada, an analyst at City Index and FOREX.com, “The sharp drop in bond yields amid expectations of rate cuts by the Fed” has contributed to the rise in gold prices.
In contrast, oil prices experienced a significant decline of around 1.5%, with Brent North Sea crude falling below $80 per barrel. Carsten Fritsch, a Commerzbank analyst, noted that “The significant price recovery on the oil market has run out of steam in recent days,” attributing the drop to reduced risk premiums and weakened demand expectations.
On Wall Street, major indices saw minor pullbacks after a recent rally. The Dow Jones Industrial Average fell by 0.2%, the S&P 500 decreased by 0.3%, and the Nasdaq Composite slipped by 0.5%. Briefing.com analyst Patrick O’Hare commented, “These aren’t big moves at all relative to the gains that have preceded them,” emphasizing that market gains have moderated amid concerns about an overbought state.
In contrast, Asian markets saw notable gains, with the Nikkei 225 rising 3.6%. European markets had mixed results, with the London FTSE 100 falling by 0.6% due to a strengthening pound impacting multinational earnings.
On the corporate front, Bayer’s shares climbed 10.7% following a favorable court ruling in its ongoing legal battle over glyphosate-based weedkillers.
