Gold prices hit another record high after fresh U.S. data spurs Fed cut expectations
Gold prices extended their rally and scaled to another record high on Monday, propelled by U.S. interest rate cut expectations and the metal’s appeal as a safe haven asset.
Gold prices extended their rally and scaled to another record high on Monday, propelled by U.S. interest rate cut expectations and the metal’s appeal as a safe haven asset.
Spot gold added 0.6% to trade at $2,245.79 per ounce. U.S. gold futures rose more than 1% to trade at $2,266.39 per ounce.
“I think it’s a really exciting moment in gold,” said Joseph Cavatoni, market strategist at the World Gold Council told CNBC on Monday. “What’s really driving it is, I think, many market speculators really getting that confidence and comfort [in] the Fed cuts,” he said.
Market watchers are expecting the U.S. Federal Reserve to cut rates in May or June.
The key Fed inflation gauge for February climbed 2.8% year-on-year, according to data released last Friday — likely to keep the U.S. central bank on hold before it can start considering interest rate cuts.
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