The price of gold this Monday broke its historical record, exceeding $2,100 per ounce. This corresponds to approximately 1900 euros. The precious metal hit exactly $2,135.39 in early Asian trading, surpassing its previous all-time high set in 2020 during the Covid-19 pandemic. An ounce of gold weighs approximately 31 grams.
One reason for this unprecedented level is that traders are counting on the US Federal Reserve to cut interest rates in the new year. Currency traders, market professionals, have flocked to gold in recent weeks to buy safe havens since the war between Israel and Hamas began.
Rates at “fairly restrictive levels”
This trend was reinforced by a series of data showing a slowdown in inflation in the US in October. This has led to speculation that the US Federal Reserve (Fed) will cut interest rates.
Bet on rate cuts further pressured the dollar, making gold cheaper for international buyers.
Forex traders began paying attention to the yellow metal after Fed Chairman Jerome Powell said on Friday that rates had “reached a fairly restrictive level,” raising hopes that the central bank will soon begin cutting rates.
Source: Le Parisien
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