SINGAPORE (AP/BLOOMBERG) – The gold price rose to a record on Monday. There is more demand for gold due to the expectation that an interest rate cut in the United States will not take long. The many unrest in the world recently and strong demand from China are also driving up the value of gold.
On the gold market, the price of gold rose by 1.6 percent during the morning on Monday compared to the closing price on Maundy Thursday to $ 2,265.73 per troy ounce (31.1 grams). This continued the advance of the previous weeks. Last month, the gold price rose for the first time to more than $2,200 per troy ounce.
According to an expert from ING, the market seems increasingly convinced that the US central bank will start cutting interest rates in June. Increasing speculation about interest rate cuts is weakening the dollar, making gold cheaper for traders with other currencies. The demand for the precious metal is therefore increasing and that is pushing the price up.
Due to the war in Ukraine and the battle between Israel and Hamas, many investors are also looking for investments that are seen as safe, such as gold. Furthermore, the Chinese central bank has added significant amounts of the precious metal to its reserves. Buying gold has also become quite popular among wealthy younger Chinese.
