Gold sets new record at $2,454.10 due to possible rate cuts and geopolitical tensions

VALENCIA (EP). The safe-haven ounce of gold hit a new record this morning after reaching $2,454.10 (€2,259) amid optimism over a possible US Federal Reserve (Fed) rate cut and tensions in the Middle East, according to market data provided by Europe Press.

The precious metal reached an all-time high, surpassing the one reached in April last year, although it subsequently curbed its gains after trading at prices almost identical to those at the opening, i.e. $2,423.65 (2,230.97 euros, up 0.26%). . This year gold has accumulated an overvaluation of 17%.

Investors are optimistic that the Fed will make its first interest rate cut next September, given inflation data released last week showed a one-tenth fall in April to 3.4% year on year.

In addition, gold will be affected by instability in the Middle East, where the death of the Iranian president became known this Monday. Ebrahim Raisias well as the International Criminal Court’s request for arrest warrants against Hamas leaders and the Israeli Prime Minister, Benjamin Netanyahuand his Minister of Defense, Yoav Gallant.

This would add to a long-term trend of some emerging market central banks increasing their gold reserves, as is the case with China’s issuing institution.