Gold: Fed’s interest rate reduction expectations behind the new price record

His prices expanded their rally and scored another high record today (1.4.2024), prompted by expectations of reducing Americans and his attractiveness as a safe asset, according to a CNBC report. Market observers expect the US Federal Reserve to reduce interest rates in May or June. The gold spot added 1.32% and negotiates at $2,265.53 per ounce. American future fulfillment contracts for gold rose over 2% and negotiated to $2,286.39 per ounce. “I think it’s a really exciting moment for gold,” Joseph Cavatoni, a market strategyist at the World Gold Council, told CNBC today. “What really drives it is, I think, that many market speculators really acquire this trust and comfort – in the Fed’s- cuts,” he said. Fed’s main inflation rate for February climbed 2.8% annually, according to the data published last Friday – it will likely keep the US central bank on hold before starting to look at interest cuts. The Fed remained stagnant in terms of interest rates at the end of its recent meeting in March, but remained in its provision for three interest rebates this year. Gold prices tend to share a reverse relationship with interest rates. As interest rates fall, gold becomes more attractive than fixed income assets, such as bonds, which would yield weaker returns in a low interest rate environment. Bar prices were also higher than demand abroad, according to Caesar Bryan, portfolio manager at the investment management company Gabelli Funds.