London CNN —Gold prices hit an all-time high Monday, buoyed by growing expectations of interest rate cuts among investors, a weaker dollar and geopolitical tensions.
“This has created a more favorable environment for gold as a non-yielding asset.”John Reade, a market strategist at the World Gold Council, an association of gold producers, told CNN that, with investors predicting several rate cuts over the next year, gold prices could “quite possibly” shoot above Monday’s record high.
Since gold is priced in US dollars, the fall in the greenback’s value has made it less expensive for investors outside the United States to buy the metal, which should have boosted demand and, in turn, lifted gold prices.
Gold prices have risen 10% so far this year.
According to the World Gold Council, central banks in emerging markets bought 473 metric tons (521 tons) of gold a year on average between 2010 and 2021.
Persons:
ebbs, Daria Efanova, ” John Reade, Jamie Dimon, ” Reade, “, Reade, ”
Organizations:
London CNN —, US Federal Reserve, Treasury, Sucden, World Gold Council, CNN, Interactive Investor
Locations:
United States, Russia, Ukraine, Israel, Gaza, China, South China, Taiwan, Russian