Gold hits fresh record above $2,200 on rate cut hopes

March 22, 2024 | 09:35

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Gold rallied to a fresh record above $2,200 on Thursday as traders welcomed a Federal Reserve signal that it would cut interest rates three times this year.

Gold hits fresh record above $2,200 on rate cut hopes, illustration photo/ Source: freepik.com

Equity markets in New York and across Asia surged and the dollar retreated in reaction to the US central bank's projection that it would begin easing monetary policy this year despite recent data showing inflation ticking up in January and February.

Gold traders also joined the party to push the precious metal to as high as $2,220 per ounce -- building on a rally that has seen it climb almost 12 percent since mid-February.

The gains have been helped by a weaker dollar and the gold's attraction as a safe haven as geopolitical tensions rise.

Because bullion does not generate any interest, it benefits when central banks lower borrowing costs as its safe-haven status makes it more attractive to investors.

"What we saw last night was the green light really for gold traders to come back in," said Pepperstone Group's Chris Weston.

"The Fed (has) said that right now they're tolerant of the inflation that we've seen, they're tolerant that the labour market strength is not going to be the impediment."

Gold, bitcoin pull back from records as US stock markets slip

Gold prices and bitcoin hit all-time highs Tuesday before paring some gains, while a sell-off in some tech stocks led to a slump in many stock markets around the world.

Domestic gold prices set new record

Domestic gold prices increased on March 7 morning to a new record at 81.25 VND (3,290 USD) million per tael (one tael is equivalent to 1.33 ounces) for SJC gold bars and 68,8 million VND for gold rings, after global prices hit an all-time high of 2,152.09 USD per ounce a day earlier.

By AFP

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