The ounce price of gold reached $2 thousand 266, breaking a record due to increasing geopolitical tensions and demand from central banks and funds.
It is noteworthy that the ounce price of gold has renewed its record in recent weeks due to the increasing expectation that the Fed and the European Central Bank (ECB) will start an interest rate reduction cycle this year, as well as geopolitical tensions and increasing demand from private funds and central banks.
The ounce price of gold increased by 9.3% in March, making it the biggest monthly increase since July 2020.
Today, after breaking the record by reaching $2266.85 at the beginning of the session in London, the ounce price of gold was traded at $2261.
Analysts stated that while inflation data from France and Italy in the Eurozone increased expectations that the ECB would cut interest rates, the ounce price of gold was supported by increasing geopolitical tensions, fund and central bank purchases.
Analysts emphasized that low interest rates reduce the opportunity cost of holding gold that does not generate permanent income, and pointed out that the recent appreciation of the dollar did not negatively affect the price of gold.
Source: AA / Prepared by Irem Yildiz