Gold prices surged to a new historic peak

Gold prices saw a significant rise and reached a record level during Monday’s trading,
as expectations for a cut in interest rates in the United States were bolstered by a decline in the inflation rate.
The lack of surprises in the core Personal Consumption Expenditures (PCE) Price Index could push gold prices to new record levels.

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The current core reading is the lowest in nearly two years, which might prompt the U.S. Federal Reserve to cut interest rates soon.
Data released on Friday showed that prices in the United States moderated in February, with the PCE Price Index rising by 0.3%.

Federal Reserve Chairman Jerome Powell indicated that the recent U.S. inflation data aligns with their expectations,
suggesting that a rate cut in June was on the table.
Traders are expecting a 69% chance that the Federal Reserve will begin cutting interest rates in June.

It’s worth noting that gold prices recorded their largest monthly increase in over three years in March,
thanks to expectations of interest rate cuts, strong demand for gold as a safe haven, and central bank purchases.

Gold futures ended last week at $2238.4 per ounce, achieving weekly and monthly gains of 2.6% and 7.9%, respectively.
Gold also posted a 6% gain during the first quarter of 2024, reaching new record levels during nine sessions in March.

Gold prices surged to a new historic peak

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