June contracts for the supply of precious metal rose in price by 2.14 percent, to 2.286 thousand dollars per ounce. The price approached $2,300 and reached a new all-time high.
Gold is rising in price amid expectations of a rate cut by the US Federal Reserve System (FRS) in June, noted Warren Patterson, head of commodity strategy at the banking group ING Groep NV. Previously, the regulator maintained the discount rate at 5.25-5.5 percent per annum. Fed Chairman Jerome Powell characterized the indicator as a peak and allowed for its further decline. Investments in the precious metal become more attractive at low interest rates, notes CNBC.
Another reason for the rise in prices was the demand of investors from China, where the real estate sector is experiencing difficulties, suggested Caesar Brian, portfolio manager of the investment management company Gabelli Funds. Gold is rising in price as global central banks buy it to diversify their reserve portfolios due to geopolitical risks, domestic inflation and dollar weakness, added Joseph Cavatoni, market strategist at the World Gold Council.
The price of gold set its previous maximum in early March. Analysts linked the rise in prices to geopolitical tensions and news of broken communication cables between Europe, Asia and Africa.
Analysts at the international rating agency Fitch believe that in 2024, world gold prices will average $1.9 thousand per troy ounce. The previous expert estimate implied world gold prices in 2024 at around 1.8 thousand dollars per ounce.
#BB.lv #Gold #traveled #record
2024-04-02 00:05:35
