Gold achieves new record high supported by central bank purchases

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The European Central Bank is expected to keep interest rates unchanged, which may contribute to continued rise in gold prices.

In anticipation of the release of important economic data and a decision on interest rates from the European Central Bank, gold recorded its highest level ever during Tuesday’s trading, supported by central bank purchases.

The price of futures contracts for the precious metal for delivery next June rose by about 0.88%, equivalent to $20.80, to reach a price of $2,371.80 per ounce.

The spot price of gold recorded $2,353.94 per ounce, an increase of 0.64%, or $14.91, after yesterday touching an unprecedented level of $2,353.79 per ounce.

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Investors around the world are awaiting important economic data, most notably the US consumer price index and the minutes of the Federal Reserve’s meeting for the month of March tomorrow, Wednesday.

Traders are also awaiting the European Central Bank’s decision on Thursday regarding interest rates, with expectations of stabilization, as rising interest rates reduce the attractiveness of the yellow metal.

This comes as investors’ expectations decline regarding the number of possible interest rate cuts this year, after the release of a strong report on US jobs last Friday.

 

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