Gold reached another record level today, sitting at US$3,750 ($5,686.97) per ounce, supported by hopes of more interest rate cuts from the Federal Reserve this year.
This news comes after the precious metals’ price reached an all time high of US$3,680 per ounce on 16 September. On 11 September gold’s price sat at US$3,640 per ounce. The record price came during the expectations of US rate cuts and rising geopolitical tensions.
Over the past month, gold’s price has risen 11.51% and is up 41.24% compared to the same time last year, according to trading on a contract for difference that tracks the benchmark market for gold.
Bullion trading arm Guardian Gold says the price is not rising on fashion or speculation – it is rising because of structure.
One of the most important drivers of gold’s rally in recent years has been due to methodical accumulation of bullion by central banks. Official institutions have purchased more than 1,000 tonnes in each of 2022, 2023, and 2024 – the highest sustained pace on record, as reported by Guardian Gold.
The total central-bank holdings now stand above 36,000 tonnes – a level not seen since the 1960s.
Write to Aaliyah Rogan at Mining.com.au
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