Gold - Near record highs on yield weakness, rate cut expectations

Gold - Near record highs on yield weakness, rate cut expectations Gold advanced toward record highs on Wednesday, boosted by lower U.S. bond yields and anticipated rate cuts from major central banks. Spot gold rose 0.48% to USD2,674.28/oz, nearing its all-time high of USD2,685.42/oz. The Fed is expected to cut rates by 25 bps in November, with potential cuts from the European Central Bank and Bank of England as well. Key drivers include safe-haven demand stemming from geopolitical tensions, fiscal instability, and de-dollarization trends (Source : Resource) Comment : Our FY25-26 forecasts are USD2,200/oz and USD2,300/oz, respectively. Sustained safe-haven demand, especially from China and central banks, along with limited new supply, is expected to support prices. Stocks like MDKA, BRMS, and ANTM stand to benefit from gold’s attractiveness.