Gold rises to record high on Chicago Mercantile Exchange

Gold prices rose to a record high on the Chicago Mercantile Exchange (CME) on April 1, RBC reports with reference to data from the trading platform.

June contracts for the supply of gold rose in price by 2.14 percent, to $2,286 per ounce. The price neared the level of $2,300 and reached a new all-time high.

Gold is rising in price amid expectations for the US Federal Reserve to cut the rate in June, Warren Patterson, head of commodity strategy at ING Groep NV said.

Previously, the FRS maintained the rate at 5.25-5.5 percent per annum. Fed Chairman Jerome Powell noted that the indicator could decline further after it reached the peak level. Investments in the precious metal become more attractive at low interest rates, CNBC notes.

• The demand of investors from China, where the real estate sector is experiencing difficulties, is another reason for the rise in gold prices, Caesar Bryan, portfolio manager of Gabelli Funds investment management company said.
• Gold is rising in price as global central banks buy it to diversify their reserve portfolios against the backdrop of geopolitical risks, domestic inflation and weakening dollar, Joseph Cavatoni, market strategist at the World Gold Council said.

Gold set its previous maximum in early March. Analysts linked the rise in prices to geopolitical tensions and news of broken communication cables between Europe, Asia and Africa.

In 2024, world gold prices will average $1,900 per troy ounce, Fitch analysts believe. In their previous forecast, Fitch expiters predicted gold prices for 2024 at around $1,800 dollars per ounce.