The prospect of further falling interest rates in the US is driving gold prices to new record highs. Since the beginning of the year, the precious metal has already risen by more than 26 percent.
Gold rose 1 percent in price to $2,612.60 (€2,341.90) per troy ounce on Friday, surpassing the previous record of €2,319.30 per ounce.
The US Federal Reserve also cut interest rates
On Wednesday evening, the US Federal Reserve lowered its key interest rate for the first time since the beginning of the decade – by half a point to a range of 4.75 to 5.00 percent. At the same time, further steps were signaled. Because gold does not pay interest, the price of the precious metal rises when the interest rate on, for example, government bonds falls.
The interest rate cut by the European Central Bank (ECB) a week ago also led to a rise in the gold price.
Gaza war as a price-determining factor
Recently, the Gaza war between Israel and the Islamist terrorist organization Hamas and the associated fear of an extension of the conflict in the Middle East have driven up the price of gold several times.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
