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Gold Price Rises, Defying U.S. Rate-Cut Gloom

Metal prices rise, with gold defying declining U.S. rate-cut predictions.

Gold is up 0.2% at $2,043.2 a troy ounce, reducing its year-to-date loss to just 1.4%.

This is an impressive performance during a month that has seen short-end yields shoot higher in response to a reduction in the expected number of U.S. rate cuts over 2024 to around three from six, Saxo’s Head of Commodity Strategy Ole Hansen says in a note.

“Despite the rising ‘cost’ of holding a non-interest-paying gold position and the markets’ current obsession with AI-related stocks and cryptos, the yellow metal has done well amid underlying demand for physical gold as well as the softer dollar,” Hansen says.

Aluminum and copper also both rise 0.4% to $2,191 a ton and $8,485 a ton, respectively.