The precious metal is rising in price on the prospect of lower US interest rates in the coming months.
Global gold prices rose to record levels as the US dollar and bond yields fell after the Federal Reserve maintained its forecast for rate cuts this year. This was reported by Reuters on Thursday, March 21.
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Spot gold was said to be up 1% at $2,208.30 an ounce after hitting a record high of $2,222.39 in the session.
The Fed yesterday kept interest rates unchanged, saying it still expects to cut them by 0.75% by the end of 2024.
Fed Chairman Jerome Powell said the recent high inflation figure did not change the underlying assumption that price pressures in the United States are slowly easing.
Federal funds futures traders are now rating a 75% chance the Fed will cut rates in June, up from 59% previously.
“With Powell targeting three possible rate cuts this year, bond yields and the US dollar have fallen, paving the way for gold prices to rise,” said Tim Waterer, chief market analyst. at KCM Trade.
Meanwhile, the dollar fell to a one-week low against its peers, while the yield on the 10-year US Treasury note also fell.
Let’s remember that at the beginning of December 2023, the price of gold exceeded $2,100 per ounce for the first time in history. At the time, analysts predicted that the price of the precious metal could remain above $2,000 per ounce in 2024. In early March, the price of gold reached a new all-time high.
Earlier it was known that the Russians were massively exporting gold from the country. So, more than 200 kg of gold was seized from one man. At the same time, he had difficulty confirming the origin of the bullion, the funds from which he obtained them, as well as the purpose of gold export.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.