Gold hits new record on expectations of continued rate cuts in the US
Istanbul, Dec. 22 (Hibya) – Gold prices climbed to a record high of $4,390 an ounce on Monday, driven by expectations that the US Federal Reserve (Fed) will further cut interest rates and by rising geopolitical tensions.
Markets are pricing in two interest rate cuts by the Federal Reserve next year amid signs that inflation is slowing and the labor market is weakening.
Investors will closely watch the release of preliminary third-quarter GDP estimates this week, which could offer more clues about the timing of the Fed’s next rate move.
On the geopolitical front, it was reported that after seizing two tankers this month, the US is tracking another vessel near Venezuela, while Ukraine struck a Russian tanker in the Mediterranean for the first time.
Gold has risen by more than 60% so far this year and is on track for its best annual performance since 1979. The rally is also supported by strong central bank purchases and steady inflows into exchange-traded funds (ETFs).
Usa News Agency
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