Spot gold rose 0.2% to a new record high of $2,235.59 an ounce on Monday, boosted by expectations of a U.S. benchmark interest rate cut and the precious metal’s appeal as a safe-haven asset, Reuters reports .
U.S. gold futures rose 0.8 percent to $2,257.80 an ounce.
“I think it’s a very exciting time for gold. What really drives it (the no increase) is, I think, a lot of market speculators really get that confidence and comfort [în] Fed cuts,” Joseph Cavatoni, market strategist at the World Gold Council, told CNBC.
Market observers expect the US Federal Reserve to cut interest rates in June.
The Fed’s key gauge of inflation for February rose 2.8 percent year-on-year, according to data released Friday, which may cause the U.S. central bank to wait before it starts considering cuts of interest.
The Fed left interest rates unchanged at the end of its recent meeting in March, but kept its forecast for three rate cuts this year.
The above article is for your personal information only. If you represent a media institution or a company and want an agreement to republish our articles, please send us an email at [email protected].
