The ounce price of gold broke a record by approaching $2,169 after US Federal Reserve (Fed) Chairman Jerome Powell reiterated that the bank would probably reduce interest rates this year.
An ounce of the precious metal reached a record level of $2 thousand 164 yesterday, and today it approached $2 thousand 169.
It is noteworthy that the ounce price of gold has broken a record for four consecutive days. While the gold price broke a record at the beginning of December 2023, rising to $2,135 per ounce, the price has remained above approximately $2,000 since then.
Analysts stated that high interest rates put pressure on the gold price, but gold received support from the Fed’s reiteration yesterday that it will probably reduce interest rates this year.
In his statement yesterday, Fed Chairman Jerome Powell stated that they are “not far” from gaining the confidence that inflation is falling sustainably towards 2%, which they need to start cutting interest rates.
Reminding that the precious metal does not bring permanent income, analysts stated that it becomes less attractive in such an environment compared to other assets considered safe, such as US bonds.
While it is noteworthy that gold purchases by central banks have been at record levels for 2 years, according to the World Gold Council, it contributes approximately 10 to 15% to the acceleration of gold prices.
Source: AA / Prepared by Irem Yildiz