23. 03. 2024 | Natalie Bezděková

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Today, the gold price reached another historical record, breaking the $2,200 per troy ounce mark, which is equivalent to approximately 51,000 crowns. This price increase can be attributed mainly to expectations of interest rate cuts in the United States, which has increased the attractiveness of investing in gold. According to many analysts, this increase is also due to the increased interest in this precious metal by many central banks, which provides further support for its price on the market.

Analysts report that the US Federal Reserve (Fed) recently left its benchmark interest rates unchanged at a range of 5.25 to 5.50 per cent. This decision was expected, but the Fed has confirmed its intention to cut interest rates three times this year, by a total of 0.75 percentage points. This policy of cutting interest rates is seen as beneficial to the price of gold because it reduces the attractiveness of other investments, such as bonds, which have high yields. The prospect of falling interest rates in the US also undermines the value of the dollar, making an investment in gold more attractive to holders of other currencies.

Aakash Doshi, an analyst at Citigroup, expressed expectations that the gold price could reach as high as $2,300 an ounce in the second half of this year. This expectation is based on the assumption of further interest rate cuts in the United States and continued investor interest in the metal. If these forecasts are confirmed, this could have important implications for the global economy and financial markets, including investment strategies and central bank decision-making.

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Natalie Bezděková

I am a student of Master's degree in Political Science. I am interested in marketing, especially copywriting and social media. I also focus on political and social events at home and abroad and technological innovations. My free time is filled with sports, reading and a passion for travel.