Wed. Jul 17th, 2024

Gold prices touched $2,150 per ounce (€1,971 per ounce) during the trading session on Wednesday, 6 March, surpassing the previous all-time high of $2,146/oz (€1,968/oz) reached in December 2023.

The precious metal has racked up a streak of seven consecutive green sessions, an event that had not occurred since August 2023.

Gold Prices Spike To Record Highs, As Markets Eye Fed Rate Cuts In 2024

The push towards new record highs comes from the market’s growing expectations of the beginning of Federal Reserve rate cuts over the course of 2024.

The latest data on the Personal Consumption Expenditures (PCE) price index – the preferred measure of inflation by Jerome Powell and the FOMC board – came out in line with expectations, dropping to 2.4% in January 2024.

In his opening remarks for his semiannual testimony before the US Congress, Fed Chair Jerome Powell underscored the likelihood of beginning to dial back policy restraint at some point this year, contingent upon continued economic stability and a sustainable move towards the 2% inflation target.

The market is currently pricing in about four rate cuts in 2024, with a 73% probability of a first cut by June 2024.

The yield on 10-year US Treasury bonds has fallen to 4.1%, from the 5% yield they had in October 2023.