Historical level.. The price of gold globally jumps with expectations of the Federal Reserve reducing interest rates

12:36 PM

Thursday 07 March 2024

Books – Ahmed Wali:

The global price of gold rose, recording its highest level ever at $2,155 per ounce, in the first hours of trading on Thursday.

This came after it reached $2,152.09 per ounce earlier in yesterday’s session, Wednesday.

According to Reuters, gold received additional support as the dollar fell after Federal Reserve Chairman Jerome Powell indicated a possible cut in US interest rates later this year.

Gold suffers when a rise in US interest rates increases the returns on competing assets such as bonds and strengthens the dollar, making the metal more expensive for foreign buyers. However, in the event of a decrease in interest on the dollar, investors turn to gold as a safe haven, which makes its price rise.

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