A new record high in gold prices after stimulating US data

Monday, April 01, 2024 - 21:16
Point Trader Group

Gold prices rose to another record level, Monday, driven by expectations of a cut in US interest rates after indicators of growth in the US industrial sector and the metal’s appeal as a safe haven asset.

 An ounce of gold rose 0.3% to trade at $2,240.04.

Gold futures in the United States rose by 0.8% to settle at $2,257.10 per ounce. The metal recorded a high level at $2286.4.

In this context, World Gold Council market strategist Joseph Cavatoni told CNBC on Monday: “I think it is a really exciting moment for gold.” He added: "I think what's really driving this is that a lot of market speculators are really getting that confidence and comfort around the US Federal Reserve's interest rate cuts."

Market observers expect the US Federal Reserve to cut interest rates in June.

The US Federal Reserve's main inflation measure for February rose by 2.8% year-on-year, according to data released last Friday, and the Fed is likely to remain in a waiting mode before it can begin considering interest rate cuts.

The US Federal Reserve kept interest rates steady at the end of its last meeting in March, but stuck to its expectations of three interest rate cuts this year.

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