4/1/2024-|Last update: 4/1/202405:36 PM (Mecca time)
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Gold hit a new record high on Monday, with investors increasingly confident that… Federal Reserve Board The US Central Bank will cut interest rates this year, even after data showed a slight rise in a report on headline inflation.
There was a great demand for buying gold this year, while the US Central Bank hinted at the possibility of easing credit conditions.
New record high
The price reached a new high in today’s session at $2,262.19 per ounce, according to Reuters, before falling slightly to $2,244.9 in the afternoon. Gold has increased by more than 8% since the beginning of the year.
Gold prices recorded unprecedented high levels when evaluated in other currencies, including the euro, yuan, yen, Indian rupee, and pound sterling.
Last Friday, the personal consumption expenditures index – on the basis of which the Federal Reserve measures inflation – showed a slight increase on an annual basis in March compared to last February.
Federal Reserve Chairman Jerome Powell said the report was “broadly in line with our expectations,” while policymakers are on track to achieve the 2% inflation target over the long term.
He explained that although the recent inflation data was higher than what the Federal Reserve had hoped for, the February numbers were “certainly more in line with what we want to see.”
Investors buy gold as a safe haven, and even when the economy is booming, consumers buy more jewelry (Shutterstock)
Fixed expectations
But it seems that these data did not have much impact on traders’ expectations regarding a cut in interest rates next June, although Powell warned that they are unlikely to fall to the levels they reached after the 2008 global financial crisis.
UBS analyst Giovanni Stonovo said, “The inflation reading in the United States, which was slightly lower than expected last Friday, supports expectations of the Federal Reserve cutting interest rates in the middle of the year.”
Gold prices also tend to rise as a safe haven in times of turmoil in the face of increasing geopolitical tensions, and in light of fears of the expansion of the war launched by Israel on Gaza.
As for other precious metals:
- Silver fell in spot transactions 0.4% to $25.06 per ounce.
- Platinum fell 0.8% to $900.74 per ounce.
- Palladium fell 1% to $1,004.69.
2024-04-01 13:36:56
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