Gold hit a new record of $2154 per ounce after Federal Reserve Chairman Jerome Powell said interest rates are likely to be cut this year, UNN reports with reference to Bloomberg.
Details
The price of gold rose by 1.1% after Federal Reserve Chairman Jerome Powell's speech to Congress. He expressed the opinion that it would probably be advisable to cut rates "at some point this year," but noted that they are not ready to do so yet.
Citigroup analyst Aakash Doshi predicted that the gold price will reach $2200 per ounce in the next three months and updated his forecast to $2300 for the next 6-12 months. The analyst cites possible recession risks in the second quarter that could support gold demand, especially given the growth in the stock and credit markets.
In addition to interest rates, other factors, such as macro fund activity in the market and the role of metallurgical metals, also affect gold's strength. The tense situation in the Middle East, problems in global shipping, economic difficulties in China, and the upcoming US presidential election are also taken into account in the analysis.
Recall
Bitcoin is close to surpassing its all-time high of $68,000 set in November 2021, as its value has already exceeded $65,000.
