Hong Kong, April 4: The price of gold reached a new record on Thursday, breaking through $2300 per troy ounce (31.1 g). Geopolitical tensions and hints from the US central bank that it will cut interest rates this year, although the exact timing is unclear, continue to drive up the price. TASR reports this based on reports from AFP and Reuters.
Spot gold reached $2304.09 (2136.78 euros) per ounce on Thursday, also breaking the $2300/ounce mark for the first time. It later erased some of its gains and was trading just above $2299/ounce. However, gold has been hitting record highs all last week, with new highs every day since Thursday, March 28.
The rise in gold prices is fueled by news from the US that the central bank still plans to cut interest rates this year. Gold’s popularity is also increasing due to rising geopolitical tensions, with traders watching the Middle East crisis and the ongoing war in Ukraine.
Markets are also waiting for information on the development of the US labor market, which the US Department of Labor will release on Friday, April 5. This could indicate whether the Fed will cut interest rates sooner or later.
