Gold Dips From Record High

Published: 4/4/2024 5:57 AM ET | 

Gold prices dipped slightly on Thursday, after having surpassed $2300 for the first time ever on the back of a weaker dollar and falling Treasury yields.

Spot gold dipped 0.3 percent to $2,292.85 per ounce, while U.S. gold futures were down 0.1 percent at $2,312.45.

The downside remained capped amid bets that policymakers at the Fed, ECB and BOE will cut rates at their June meetings.

Fed officials will likely reduce their benchmark interest rate later this year, Chair Jerome Powell said Wednesday but nevertheless emphasized the need for more evidence that inflation is easing.

Elsewhere, ECB’s Robert Holzmann said the central bank could start cutting interest rates in June but warned the ECB should not get too far ahead of its U.S. counterpart.

Speculation is rife that the Bank of England will deliver more interest-rate cuts than the Fed this year.

Minutes of the most policy recent meeting published earlier today suggested that Sweden’s central bank may be able to cut its key rate in May if inflation continues to ease.

Minutes from the European Central Bank’s latest policy meeting are awaited later in the day.

Reports on weekly jobless claims and the U.S. trade deficit may attract attention in the New York session, although trading activity is likely to be somewhat subdued ahead of the release of the more closely watched monthly jobs report on Friday.