Gold hits new record with Fed officials' statements

Gold hit a new record high after Daly and Mester said they still expect the Fed to cut interest rates three times in 2024, sending gold to a new all-time high and silver to a two-year high after two Fed officials said they still expect the U.S. central bank to cut interest rates three times in 2024. That also boosted the outlook for precious metals. Bullion rose to a new high above $2,288 an ounce, while silver rose above $26 an ounce. San Francisco Fed President Mary Daly and her Cleveland counterpart Loretta Mester, who both vote on policy decisions this year, said three cuts were likely through 2024, though there was no urgency. Gold has gained nearly 11% this year, hitting records on expectations of lower U.S. interest rates. Still, data showing the U.S. economy remains strong raises some skepticism about the likely timing of any Fed cuts. Fed Chair Jerome Powell is scheduled to speak later Wednesday, potentially offering new insights into the policy outlook. Spot gold was steady at $2,281.29 an ounce as of 9:52 a.m. Singapore time, after touching $2,288.40. Silver rose to $26.34 an ounce, its highest intraday level since March 2022. Platinum and palladium were flat, while the Bloomberg Dollar Spot Index was steady.