Spot gold prices jumped on Thursday to a new record high above $2,230 per ounce, driven by statements from the US Federal Reserve about an imminent cut in interest rates.
On Wednesday, US Federal Reserve Chairman Jerome Powell said that the Open Market Committee team believes that it will lower interest rates on three occasions later this year.
He stated that lowering interest rates would remain strongly on the table despite the rise in the consumer price index in February to 3.2 percent, up from 3.1 percent in the previous January.
By 08:22 (GMT), spot gold contract prices rose by 1.1 percent, or $31, to $2,230.5 per ounce.
Wall Street analysts expect gold prices to break the $2,300 per ounce barrier later this year due to increased demand, especially from central banks.
At yesterday’s meeting, the Federal Reserve’s Open Market Committee kept interest rates unchanged at a range of 5.25 percent – 5.5 percent and maintained expectations of reducing borrowing costs three times this year.
