Gold Strikes a New All‑Time High – Investors Are Feasting on the Promise of a Fed Rate Cut
Picture this: a gleaming ounce of gold jumps 1.15% higher, landing at $2,139.24 per ounce on Tuesday. That’s a new record, beating the old peak of $2,135.39 set last December.
Why are people bubbling over?
- Safe‑haven demand spikes as tensions flare in the Middle East.
- Central banks are buying like there’s no tomorrow.
- The monetary cycle is slipping from a tightening stance to a more easing one.
“It’s a perfect storm for gold” – Trading.Biz analyst Tobi Opeyemi Amure
“With the dollar cooling off and the Fed presumably cutting rates in June, gold’s price action is poised to keep soaring. Investors are flocking to this safe‑haven whenever the economic clouds get murkier.”
– Tobi Opeyemi Amure
What the research says
- According to ANZ, gold could reach $2,200 by year‑end thanks to continuing global purchases and the shift in monetary policy.
- JPMorgan Commodities Research notes a week‑on‑week increase in precious‑metal open interest of 6%, pushing it to roughly $150 billion—the highest in six weeks. That plus bullish price action has lured in fresh inflows.
Wall Street’s gold‑rich players are in the spotlight
- Eldorado Gold (EGO)
- Newmont (NEM)
- Agnico Eagle Mines (AEM)
- Barrick Gold (GOLD)
Silver isn’t lagging either – its recent rally rides the same wave of Fed‑cut expectations and fresh buying.
What’s next?
Gold’s ascent is just getting started. Investors are watching closely for Federal Reserve Chair Jerome Powell’s testimony to Congress, which could finally crack the case on when the rate cut will materialize. If the cut arrives, expect gold to keep climbing.
Stay tuned. Gold’s glow isn’t just a glint in the market; it’s a beacon for those seeking safety amid uncertainty.
