Gold at an all-time high ! It has crossed the $2,500 per ounce mark!
The price of gold reached a record high on Friday, crossing the $2,500 per troy ounce mark (over CZK 57,000 for 31.1 grams). This growth is mainly supported by the expectation that the US Federal Reserve (Fed) will cut the key interest rate in September.
According to Reuters, the price of gold climbed as high as $2,500.99 per ounce before later losing some of its gains. At around 20:00 CET, it was close to $2,499 per ounce, an increase of around 1.7 percent. Since the beginning of the year, gold has appreciated by more than 20 percent.
“Gold has surpassed an all-time high and crossed the $2,500 mark,” said Tai Wong, an independent metals trader in New York. He said the focus is now on the upcoming meeting of the world’s central bankers in the US mountain resort of Jackson Hole next week, where Fed chief Jerome Powell will speak. In fact, low interest rates increase the attractiveness of gold because they reduce the yields of financial products such as savings accounts and time deposits.
“A cut in rates will reduce the attractiveness of interest-bearing deposits, which will lead to a shift of capital into gold. Therefore, gold can be expected to experience further growth, although the rate cuts may be slower than the market is currently anticipating,” said XTB analyst Tomas Cverna.
Gainesville Coins analyst Everett Millman added that ongoing tensions in the Middle East and the ongoing conflict between Ukraine and Russia are also contributing to the rise in the gold price, as investors see gold as a safe haven in times of uncertainty.
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