The yellow metal is at its highest. The price of gold broke its all-time high on Monday at more than $2,100 per ounce, with traders banking on a cut in interest rates from the US Federal Reserve in the new year.
The precious metal reached $2,135.39 in early Asian trading, surpassing the previous all-time high set in 2020, during the Covid-19 pandemic.
A safe haven in the face of geopolitical tensions
In recent weeks, currency traders have flocked to gold to buy safe values since the outbreak of the war between Israel and Hamas. This trend was reinforced by a series of data indicating a slowdown in inflation for October in the United States, which led to speculation about a cut in interest rates from the US Federal Reserve (Fed).
Bets of a rate cut further weighed on the dollar, making gold cheaper for international buyers. Forex traders began to turn to the yellow metal after Fed boss Jerome Powell said on Friday that rates had “reached a sufficiently restrictive level”, fueling hopes that the central bank would soon begin to reduce its rates.