Gold surges past US$2300 mark to reach record highs

Gold prices surged to new highs as US futures broke through the $US2,300 level, despite a rise in US bond yields. Federal Reserve Chair Jerome Powell reiterated that the central bank will wait for clearer signs of lower inflation before cutting interest rates.

Powell stated that recent US inflation figures, though higher than expected, did not significantly alter the overall picture. He emphasized the need for greater confidence that inflation is moving sustainably down towards 2 percent before considering a policy rate cut.

The 10-year Treasury bond yield eased back to just over 4.35% after Powell’s speech, with Comex gold futures for June crossing the $US2,300 mark, reaching $2,317.50 per ounce. The Australian dollar price was around $A3,497 an ounce, driven by concerns over tensions in the Middle East.

Oil prices also rose, with US crude above $US85 a barrel and Brent closing in on $US90 a barrel. Copper jumped 3.5% to over $US4.21 a pound, setting a new 52-week high. However, iron ore prices dipped below $100 a tonne, closing at $98.55.

Investors are anticipating a rate cut at the Fed’s June meeting, despite doubts due to stronger economic data. The upcoming US jobs report for March will be a key indicator, with economists predicting around 200,000 new jobs created last month.

Overall, the market remains volatile with various factors influencing prices, from inflation concerns to geopolitical tensions. Investors are closely watching economic data and central bank decisions for signals on future market movements.