Gold Hits Another Record, Topping $2,365/oz

Gold prices soared to a new record, reaching as high as $2,365.35 an ounce, in anticipation of the upcoming US inflation data. This surge, marking an 18% increase since mid-February, reflects investors’ expectations that the Federal Reserve might ease interest rates based on the inflation trends. While economists predict a slight cooling off in March’s inflation, which could justify rate cuts, gold’s appeal strengthens as lower interest rates make non-yielding assets like gold more attractive. This unexpected rally comes despite diminishing expectations for aggressive rate cuts by the Fed.