On Monday, gold prices surged to yet another all-time high, driven by anticipations of interest rate cuts in the United States and the metal's status as a sought-after safe haven asset.
Spot gold saw a 0.3% increase, reaching $2,240.04 per ounce in trading. Meanwhile, U.S. gold futures experienced an uptick of 0.8%, settling at $2,257.10 per ounce, with the metal peaking at $2,286.4.
Market analysts anticipate that the U.S. Federal Reserve will implement interest rate reductions in June. Data released on Friday revealed that the key Fed inflation gauge for February surged by 2.8% year-on-year, which is expected to deter the U.S. central bank from making any immediate rate adjustments.
Gold prices often exhibit an inverse correlation with interest rates. When interest rates decline, gold tends to become more attractive relative to fixed income assets like bonds, which offer lower returns in a low interest rate environment.
Caesar Bryan, portfolio manager at investment management company Gabelli Funds, noted that bullion prices were also boosted by increased overseas demand.
