England – Gold prices recorded a new rise in trading yesterday, Tuesday, as growing hopes that the US Federal Reserve will cut interest rates prompted investors to buy more of the precious metal.
Spot gold rose to a record $2,522.99 on Tuesday morning, up 0.7 percent from Monday’s close.
Wall Street analysts attributed the rise to the possibility of interest rate cuts by central banks, led by the US Federal Reserve.
Low interest rates tend to reduce the appeal of bonds and stocks because they reduce potential returns, and that has prompted many investors to place bets on higher gold prices.
The practical uses of gold are mainly limited to jewelry and some electronic devices, while contracts do not provide any returns except the possibility of future price increases.
However, investors view it as a safe haven during turbulent economic and geopolitical times.
The reaction to the wars in Ukraine and Gaza appears to have been a factor behind its surge in value over the past two years, even as US interest rates have risen from historic lows to 23-year highs.
Gold prices have risen by two-thirds since the end of 2019. However, much of that gain has come since the beginning of March this year, helped by growing expectations of interest rate cuts.
Anatolia
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2024-08-22 00:53:55
