Gold's Record High
Gold hit a record high as hopes for Federal Reserve rate cuts grow and some traders ramped up bets on a second Donald Trump presidency. The rally is supported by slowing inflation, central bank purchases, strong consumer demand in China, and geopolitical tensions.
Key Points
- Gold hit a record high of $2,469.66 an ounce
- Supported by slowing inflation in the US
- Central bank purchases and strong consumer demand in China are contributing to the rally
- Traders betting on a second term for Donald Trump
Pros
- Record high price for gold
- Hopes for Federal Reserve rate cuts
- Increased bets on a second Donald Trump presidency
- Support from central bank purchases and strong consumer demand in China
Cons
- High interest rates tend to be negative for gold
- Speculation and uncertainty in the market