Gold Price Hits Record High Near $4,200 as Fed Rate Cut Hopes Grow
Gold prices reached a new record high, trading close to $4,200 per ounce in Asian markets. This strong rally marks the third straight day of gains, supported by rising expectations of Federal Reserve rate cuts and global trade tensions.
Investors are now betting that the U.S. Federal Reserve could lower interest rates in the coming months. Fed Chair Jerome Powell recently said that decisions will be made “meeting by meeting,” while also noting that the job market is slowing. These comments increased hopes that the Fed might ease policy soon, pushing gold prices higher.
A weak U.S. dollar and falling bond yields also helped gold rise further, as investors move their money toward safe-haven assets during uncertain times. Trade tensions between the U.S. and China have added more support to gold demand.
At the same time, silver prices also climbed by 1.4%, reaching around $52.12 per ounce. Gold has now gained over 50% so far this year, supported by strong central bank buying and inflows into gold ETFs.
Impact:
Gold prices might continue to rise above $4,200 if Fed rate cut hopes stay strong, though some short-term correction could possibly occur.
