yolowire.com - The price of Gold has hit a new all-time high as expectations grow that the U.S. Federal Reserve will begin lowering interest rates in September of this year.
The price of spot gold is currently at $2,482.30 U.S. per ounce, a record high, according to data from LSEG.
The move higher comes after U.S. Federal Reserve Chair Jerome Powell said that the central bank won’t wait for inflation to reach its 2% target before it begins lowering interest rates.
U.S. monthly inflation fell in June for the first time in four years, raising expectations that interest rates will be lowered in coming months.
Futures traders are currently betting 93% in favour of an interest rate cut this September.
As interest rates decline, gold tends to become more appealing compared to fixed-income assets such as bonds.
Gold prices have also risen this year due to its appeal as a safe-haven asset amid geopolitical conflicts in the Middle East and Ukraine.
Central banks around the world have increased their gold purchases significantly over the past 18 months.