Gold Price Surges to Record High Amidst Rate Cuts and Geopolitical Risks
Gold prices have surged to record highs, with the precious metal reaching $3,719.95 per troy ounce on Monday, September 22. This significant increase, which has seen the gold price more than double in the past three years, is attributed to falling interest rates and escalating geopolitical risks. Experts, like Soni Kumari of ANZ Bank, anticipate further price increases.
The US Federal Reserve's recent mid-month key interest rate cut and hints of two more by year-end have fuelled these expectations. Kumari, a commodities expert known for her insights on the gold price, believes that growing expectations of an aggressive rate cut in the US are driving up gold prices. The gold price appreciated by about $34 compared to last Friday, reflecting this strengthening demand.
The aggressive trade policy of the US government has also contributed to concerns about the Fed's independence, further boosting gold's appeal as a safe haven. Consequently, the gold price in euros has also reached a record high, at €3,166.98.
With demand for gold continuing to strengthen and experts predicting further price increases, investors are advised to monitor the gold market closely. The influence of geopolitical risks and interest rate cuts on gold prices is expected to remain significant in the coming months.
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