Bets on US rate cuts and China stimulus push gold and silver beyond $30

China, a significant buyer of both gold and industrial metals, took "historic" moves to stabilize the crisis-hit real estate sector, which helped to stabilize the market.

Interest rate reductions often increase the attraction of non-yielding bullion.

With renewed expectations for U.S. interest rate reduction, gold prices, helped by China's stimulus efforts, seemed set to record their second straight weekly increase on Friday. Silver broke above the $30 barrier to reach an 11-year high.

By 1745 GMT, spot gold had increased 1.5% to $2,412.83 an ounce, drawing closer to the record high of $2,431.29 reached on April 12.

The closing price of US gold futures was $2417.40 per ounce, up 1.3%.

Despite an increase in rates and the currency, gold is still rising. Bart Melek, head of commodities strategies at TD Securities, said, "I believe that in this case, the stimulus from China has been helpful because we're also seeing other (base) metals do very well." [MET/L]

China, a significant buyer of both gold and industrial metals, took "historic" moves to stabilize the crisis-hit real estate sector, which helped to stabilize the market.

This week, spot gold prices have increased by more than 2%.

The London Bullion Market Association (LBMA) said that the benchmark for London gold prices concluded the week at a record high of $2402.60-per troy ounce.

In the end, gold is reacting to the notion that US inflation is most likely under control. Any discussion of an extended era of high interest rates will be subdued, according to Melek.

Traders anticipate that the Fed will drop interest rates twice this year, most likely beginning in November. [FEDWATCH]

Interest rate reductions often increase the attraction of non-yielding bullion.

Spot silver broke over a key resistance level of $30, and it surged 4.8% to $31.02 per ounce. Silver hasn't been able to hold the $30 price level for a prolonged length of time since early 2021; more than 10 years have passed since then.

"Whenever we discuss China's stimulus, it is positive for the platinum markets," Melek said.

Platinum reached a one-year high on Thursday and then gained 2.3% to $1,081.37. The metal has increased by 9% this week because to ongoing structural deficiencies.

Palladium reached $1,007, up 1.2%.