Ajman: Gold prices shattered records on Monday, soaring past $3,960 per ounce, driven by growing market expectations that the Federal Reserve will cut interest rates this month. Global political and economic uncertainty further boosted demand for the safe-haven metal, with spot gold amounting to $3,963 today.
According to Emirates News Agency, the surge in gold prices is largely attributed to investors seeking refuge amid a volatile economic landscape. The anticipation of a potential interest rate cut by the Federal Reserve has fueled this rush, as lower interest rates tend to decrease the opportunity cost of holding non-yielding assets like gold.
Market analysts have noted a significant uptick in gold purchases as geopolitical tensions continue to rise. The metal’s appeal as a secure investment in times of uncertainty has been a key factor in driving prices to this unprecedented level.
Investors are closely monitoring the Federal Reserve’s upcoming decisions, as any adjustments in monetary policy could have lasting impacts on the gold market. The current trend underscores the persistent allure of gold as a protective asset in the face of fluctuating global dynamics.