Gold Hits New Record on Rate-Cut Bets
Gold prices soared to an unprecedented $3,728 per ounce on Monday, influenced by growing expectations of additional US interest rate cuts and ongoing demand for safe-haven assets driven by political instability. Investors are now focused on upcoming US PCE inflation data and statements from Federal Reserve officials this week, seeking further policy guidance. Last week, the Federal Reserve implemented its first rate cut since December and signaled that more reductions are likely as the labor market shows signs of weakening. Currently, markets are anticipating two additional 25-basis-point cuts at the Fed's remaining meetings this year, with expectations of continued monetary easing propelling gold's 40% rise year-to-date. Safe-haven investment has also been bolstered by persistent geopolitical risks, including the Russia-Ukraine conflict, concerns about the economic impact of former President Donald Trump’s tariffs, significant central bank purchases, and consistent ETF inflows.
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