Gold trades at record high in Australia, hits 26-month high in EUR terms


  • Gold hits record highs in AUD terms.
  • Dovish RBA expectations are seemingly boding well for the yellow metal.  
  • XAU/EUR hits highest since April 2017.

Gold is shining bright across the globe this Friday morning with prices trading at lifetime highs in Australian dollar terms.

XAU/AUD or Gold in AUD terms is currently trading at A$ 1,954 per Oz, the highest level on record, having surpassed the previous record high of A$ 1,923.50 on June 12.

Gold has risen to record highs in AUD terms amid growing calls for aggressive Reserve Bank of Australia (RBA) rate cuts. National Bank of Australia revised its forecast for RBA cuts to three from two earlier today.

Westpac, one of the leading Australian banks, put out a forecast on May 24, calling for three rate cuts this year.

The central bank reduced rates by 25 basis points to a new record low of 1.25% earlier this month and as per forecasts by NAB and Westpac, the rates could drop to 0.75% by the end of December.

Therefore, the path of least resistance for XAU/AUD is on the higher side.

The yellow metal is also scoring gains against the shared currency with XAU/EUR currently trading at €1,195 per Oz, the highest level since April 2017.

In USD terms, gold is currently changing hands at $1,346 per Oz and could print fresh 2019 highs above $1,348 in the run up to next week’s Fed rate decision.

The markets are priced for three Fed rate cuts this year. Goldman Sachs, however, believes the markets have run ahead of themselves and the Fed will keep rates unchanged for the rest of the year.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD rises above 1.1200 amid some USD weakness

EUR/USD is trading above 1.1200, recovering some of the losses. Earlier, ECB officials expressed concern about global growth President Draghi speaks later. Tension is rising toward the Fed decision.

EUR/USD News

GBP/USD falls to the lowest since January

GBP/USD is trading around 1.2550, the lowest since January. Sterling has been under pressure amid growing uncertainty about Brexit and USD strength.

GBP/USD News

USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.

USD/JPY News

Gold recovers early lost ground, back above $1240 level

Gold recovered a major part of its early slide and moved to the top end of its daily trading range, above the $1340 region post-US data.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more

Majors

Cryptocurrencies

Signatures