Since mid-February, several positive factors have led to an increase in the price of gold bars by about 14%.
Global gold prices rose again to record levels amid expectations that interest rates will be cut by the US Federal Reserve. Bloomberg reported this on Monday, April 1.
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Today, gold prices rose another 1.49% to $2,265.73 an ounce, hitting a number of peaks in recent sessions.
Since mid-February, several positive factors have led to an increase in the price of gold bars by approximately 14%. Expectations of monetary easing by leading central banks, as well as rising tensions in the Middle East and Ukraine, contributed to the rise in prices.
Central banks are actively buying gold, especially in China, and consumers are hoarding bullion amid problems in Asia’s biggest economy.
After the inflation data was released, Fed Chairman Jerome Powell said the information was “largely in line with our expectations” and that there was no need to cut rates immediately.
At the same time, swap markets estimate the likelihood of a June Fed rate cut at 61%, down from 57% on Thursday. Lower rates tend to have a positive effect on gold, which does not pay interest, it said.
Also in Singapore, spot gold rose 1.4% to $2,261.14. per ounce after rising 3% last week.
In China, demand for gold has been relatively strong in recent quarters. The country’s central bank has added large amounts of bullion to its reserves, increasing its holdings in each of the last 16 months. In addition, buying gold is becoming increasingly popular among young Chinese.
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.
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.