The gold price has reached a new high as interest rate bets shift
Gold prices have reached a new high, while the value of Bitcoin has also increased.
The gains come as traders change their investment strategy after nearly two years of increasing interest rates boosting demand for US dollars and certain types of debt.
Investors now anticipate a greater likelihood of rate reduction, which has rekindled interest in alternative assets.
As Asian markets opened on Monday, the price of gold soared beyond $2,000, up 3%, before falling again.
Dollar demand increased again later in the trading day on Monday, helping to send gold down. According to experts, many gold investors are taking advantage of recent highs to sell.
The gains come after a weeks-long surge for the metal, which is seen as a «safe haven» and saw demand jump following the commencement of the Israel-Gaza conflict.
The current spike was spurred by comments made by US Federal Reserve Chairman Jerome Powell on Friday.
Concerns over skyrocketing inflation spurred the Federal Reserve – and central banks across the world – to quickly raise interest rates to levels not seen in more than two decades in order to try to stabilize prices.
Financial markets in the United States have largely rebounded in recent months, as experts become more confident that the Fed will be able to control inflation without causing severe damage to the American economy.
