2024-04-03 21:45:43
Strong climb
The price of the precious metal has risen by more than 10% this year, setting a series of records. While the Fed’s expected turnaround is positive for non-interest-bearing gold, its strong rally over the past month has often seen sharp rises without a clear catalyst to justify these gains, as investors flock to bullion.
Ongoing tensions in the Middle East and Ukraine have strengthened the precious metal’s safe-haven role, and central bank purchases have supported prices at historically high levels over the past year, despite high interest rates.
The price of gold is at a record level and silver is rising amid expectations of a rate cut
The latest data compiled by the World Gold Council shows that central banks continued to increase their gold holdings in February, albeit at a slower pace than before. They bought 19 net tons, increasing their holdings for the ninth month in a row.
However, the record high price of gold has yet to attract investors who prefer exposure to the metal through physically backed exchange-traded funds. Global holdings of these ETFs have shrunk by more than 100 tons year-to-date, reaching their lowest level since September 2019, according to a Bloomberg tally.
The bullion price rose 0.9% to settle at $2,300 an ounce by 5 p.m. in New York. The 14-day Relative Strength Index stood at 83, above the 70 level that signals to some investors that prices may have risen too much, too quickly. The price of silver rose 4% to close at $27.18 per ounce, the highest level since June 2021. The price of platinum and palladium rose.
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