The post Gold hits record high as rate cut hopes surge, XAU/USD breaches $2,450 appeared on BitcoinEthereumNews.com.

Gold markets lurched into a fresh all-time high on Tuesday as rate markets fully price in a September rate cut from the Federal Reserve (Fed). US Retail Sales slumped flat in June, piling soft data on top of more soft data after last week’s US Consumer Price Index (CPI) inflation print cooled more than expected. With US data softening and growing concerns about an economic downturn weighing on the US domestic economy, rate cut bets have been pinned to the ceiling and investors are piling into Gold, pushing XAU/USD to a record high of $2,465.30 during Tuesday’s US market session. XAU/USD hourly chart Gold FAQs Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major…

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Filed under: News - @ July 17, 2024 1:26 am