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.

Omkar Godbole FXStreet Contributor

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.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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