The precious metal rose in price against the backdrop of a weakening US dollar and lower yields on US government bonds.
World gold prices continued to rise and reached a new historic high of $2,610 per ounce. This was confirmed by the trading results on Friday, September 13th.
According to Trading Economics, gold is rising in price against the backdrop of a weakening US dollar and lower yields on US government bonds. This added to market expectations of more aggressive action from the US Federal Reserve at next week’s meeting.
Market analysts have no doubt that the Federal Reserve will lower interest rates following the September management meeting. At the same time, they estimate a greater than 40% probability that the base rate will be cut by 50 basis points at once, according to CME FedWatch.
However, “monetary policy linked to inflation data is only part of the story,” said Altavest managing partner Michael Armbruster.
“There is strong global interest in physical gold,” he told MarketWatch.
According to him, a recent survey showed that the world’s central banks are increasing investments in gold and reducing US dollar reserves.
“The multi-trillion-dollar US federal budget deficit is driving inflation and devaluing our currency,” Armbruster said.
Meanwhile, Citi analysts believe gold could reach $3,000 an ounce before mid-2025, driven by lower US interest rates, strong demand from exchange-traded funds and over-the -counter physical demand, writes Reuters.
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 the second half of August, the price of gold reached a new historic high.
Source: korrespondent
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