Gold prices have surged to a record high on growing expectations of US interest rate cuts added to months of prodigious buying of the safe haven asset by central banks and Chinese investors.
The yellow metal struck $2,141 per troy ounce, beating the previous record of $2,135 in December, according to LSEG data, before retreating to $2,127.
Tuesday’s move continued a rally that started on Friday led by rising market expectations of a Federal Reserve rate cut in June following weaker economic data.
“It’s a stealth rally,” said Ross Norman, chief executive of Metals Daily, an industry publication, adding that the 16-month rally had been buttressed by record central bank buying and “phenomenal” purchases of bullion by Chinese consumers.