- Gold prices have reached a record high.
- U.S. gold futures increased by more than 1% to trade at $2,266.39 per ounce.
- The U.S. Federal Reserve is anticipated by market observers to lower interest rates in June.
Due to the metal’s attractiveness as a haven asset and anticipations of U.S. interest rate cuts, gold prices have reached a record high. While U.S. gold futures increased by more than 1% to trade at $2,266.39 per ounce, spot gold jumped 0.6% to trade at $2,245.79 per ounce.
According to World Gold Council market expert Joseph Cavatoni, there is excitement in the gold market right now since a lot of market speculators are becoming more confident and at ease with the Fed’s rate reduction.
Gold price
The U.S. Federal Reserve is anticipated by market observers to lower interest rates in June. The main Fed inflation measure increased 2.8% in February compared to the previous year, which is expected to keep the US central bank on hold before it considers cutting interest rates.
When compared to fixed-income assets like bonds, gold is more attractive because it tends to have an inverse connection with interest rates. Due to the shaky Chinese economy and real estate market, individual investors have been drawn to gold, which has also increased in price due to demand from overseas.
Due to geopolitical concerns, domestic inflation, and the weakening of the US currency, central banks throughout the world have been buying large quantities of gold to diversify their reserve portfolios and drive the gold surge.
