Gold Soars To Record High As Rate Cuts Loom

Gold scaled a record high on Tuesday (Wednesday, Mar. 7, 2024, in Manila), moving further above $2,100 per ounce in a rally sparked by growing bets for a US interest rate cut in June and on safe-haven demand due to the conflict in the Middle East, Anjana Anil and Ashitha Shivaprasad reported for Reuters.

Gold is a safe haven during times of geopolitical tensions and when interest rates decrease.

Reporting for Bloomberg News, Jack Ryan and Yvonne Yue Li said gold set a new record, while other precious metals also chalked up big gains, after Federal Reserve Chair Jerome Powell reiterated the US central bank will likely cut interest rates this year.

Bullion hit a fresh high of $2,152.25 an ounce, while palladium broke the $1,000-an-ounce mark with gains of more than 10%.

Ines Ferré also reported for Yahoo Finance that gold is a safe haven during times of geopolitical tensions and when interest rates decrease.

While the timing of the first Fed rate cut is uncertain, investors expect the Federal Reserve to begin cutting rates in June, while Europe is also expected to do the same this year.

"We've got a perfect storm brewing in the gold market," Phillip Streible, chief market strategist at Blue Line Futures, told Yahoo Finance on Tuesday, noting prices have risen by about $150 since mid-February. s

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