Gold’S Price Rises Above $2,300 For The First Time
Date
4/4/2024 10:18:03 AM
(MENAFN- Yolo Wire) The price of %Gold has risen above the $2,300 U.S. per ounce mark for the very first time, hitting an all-time high in the process.
Gold's price continues to march higher on prospects for lower U.S. interest rates and as central banks around the world increase their stores of bullion.
On April 3, U.S. federal Reserve Chair Jerome Powell said that the strong American Economy and stubborn inflation had not altered the overall picture for monetary policy moving forward, sending the price of gold higher.
Spot gold is currently trading at a record high of $2,307.30 U.S. an ounce.
Futures traders are currently pricing in a 52% chance that the American central bank will start cutting interest rates in June of this year.
Gold benefits when interest rates fall as it reduces the opportunity cost of holding bullion.
At the same time, central banks have been increasing their holdings of gold, which is viewed as a safe haven asset in times of geopolitical turmoil.
Central banks have been buying more gold with military conflicts raging in the Middle East and Ukraine.
By some estimates, central bank buying has driven up the price of gold by more than 25% in the last six months.
Other precious metals have also seen their prices rise in recent months. Silver's price is currently at $26.98 U.S. per ounce, its highest level since June 2021.
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