Gold prices soar to new heights amid fed rate cut hopes and trump prospects
The price of gold has reached a record high, driven by investors' hopes for an interest rate cut by the Federal Reserve and predictions that Donald Trump will win the presidential election, Bloomberg reports.
The price of gold rose to £1920.00 per ounce, surpassing the previous all-time high recorded at the end of May, Bloomberg reports.
The price of gold is rising
"This increase comes as signs of slowing inflation in the USA fuel speculation that the central bank will soon start cutting interest rates," the agency reports.
Bloomberg notes that the price of gold has risen by nearly 20% this year, partly due to large purchases by central banks, increased consumption in China, and growing demand for safe-haven assets.
"For quite some time, investors around the world have been paying special attention to the metals market, with even greater focus on the precious metals market, particularly gold and silver. It's no wonder they attract investor attention. Since October 2023, the price of gold has risen by over 33% (from £1400 to over £1920 per ounce), and silver by over 50% (from £16 to over £25 per ounce). Copper has also increased in price, gaining nearly 40%," wrote Piotr Kuczyński, chief analyst at the investment house Xelion, in May for money.pl.
High rate will persist
The Treasury Mint expects the high rate of gold to be maintained in the second half of 2024, with gradual further increases.
According to experts from the Treasury Mint, the dynamic rise in the price of gold is primarily due to uncertainty in financial markets, the Fed's policy, and the geopolitical situation—especially as a result of the war in Ukraine and the Middle East.
"Analysing the gold markets, one must remember that all forecasts carry a degree of uncertainty. However, observing the current situation, one can expect that in the second half of 2024, we will witness the maintenance of a high gold rate," asserts Adam Stroniawski, managing director of sales at the Treasury Mint.
