The price of gold broke its all-time high on Monday, reaching more than $2,100 per ounce (31.1 g), as traders bet on a cut in interest rates from the US Federal Reserve (FED) next year, following statements by FED boss Jerome Powell, who announced on Friday that rates are “well into restrictive territory,” fanning hopes that the bank could begin cutting soon.
Bloomberg reported that traders saw a 60% chance of such a move happening in March.
The precious metal reached $2,135.39 in early Asian trade, topping the previous all-time high set in August 2020 ($2075.47 per ounce) during the COVID-19 pandemic.
In recent weeks, traders have flocked into bullion on safe-haven buying as the Israel-Hamas war started. In addition, data showing a slowdown in inflation for October in the United States led to speculation that the FED could be slashing rates.
Bets on a drop in rates have weighed on the dollar, which has in turn made gold cheaper for international buyers.
AFP
