World gold prices continue their record streak

The new peak of precious metal prices was established at 2,304 USD per ounce on April 4, thanks to expectations that the US would reduce interest rates.

Closing the April 4 trading session, the world spot gold price decreased by 7 USD, down to 2,290 USD per ounce. But right before closing, the price set a new level at 2,304 USD per ounce, due to expectations that the US would lower interest rates this year.

Prices decreased towards the end of the session when investors wanted to wait for more clear news about the timing of interest reduction.

"The market is still excited about the April 3 speech of US Federal Reserve Chairman Jerome Powell about reducing interest rates. Especially in the context that inflation is still well above the 2% target. much," said Bart Melek - Director of Commodity Strategy at TD Securities.

World gold prices have continuously set new peaks in the past few sessions. Chart: Goldprice

Fed officials on April 3 said they needed more data to discuss. The market currently expects the Fed to reduce interest rates in June.

The latest report shows that the number of applications for unemployment benefits in the US last week increased stronger than expected. Investors are currently waiting for the March employment report, which will be released today, to further evaluate when interest rates will decrease.

Since October 2023, the purchasing power of central banks and the need for shelter when geopolitical tensions increase have pushed gold prices up by 25%. This precious metal has also continuously set new peaks in the past few sessions.

"Gold is being bought very strongly. The market may adjust. Because in my opinion, the expectation that the Fed will reduce interest rates is already reflected in the price," said Rhona O'Connell - analyst at StoneX. .

Other precious metals also increased slightly yesterday. Platinum rose 0.3% to $939 an ounce. Palladium rose 1.6% to $1,029. Silver stood still at $27.20, after hitting its highest mark since June 2021.

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