Gold Prices Soar to Record High

On Tuesday, March 5, gold prices set a new all-time high. The yellow metal, which is seen as an alternative safe haven asset at a time of rising international tensions, is being driven by the prospect of a rate cut by the US Federal Reserve following less than encouraging economic data in the United States, analysts said.

In the afternoon, after a series of rises, an ounce of gold rose from $2130.00 to a record high of $2141.79, thus surpassing the all-time high of early December 2023, when prices reached $2135.39 per ounce. “Concerns about the global economic outlook, geopolitical tensions, and a shift in expectations toward an anticipated interest rate cut have helped boost demand for the precious metal,” Ricardo Evangelista, an analyst at financial firm ActivTrades, told Bloomberg news agency.

The latest data on the state of the US economy points to a decline in consumer confidence. A decline in investment in the US construction sector in January also continues to have an impact. The combination of these factors led analysts to conclude that the Fed “can’t help but cut rates soon, whereas now they are at 5.25% and 5.50%, to support the economy that is struggling to breathe.”