Green Asia

Gold hits new record high on Fed rate cut bets

He said that while the recent inflation data was higher than the Fed would have liked, the February figures were “definitely more along the lines of what we want to see”.

The data appeared to have little impact on traders’ expectations for a June interest rate cut, though Powell warned they were unlikely to fall to the levels seen after the 2008 global financial crisis.

Adding to the upward pressure on prices is its demand as a safe haven in times of turmoil owing to growing geopolitical tensions, with concerns that Israel’s war on Hamas in Gaza will spread further.

An air strike in Lebanon Sunday stoked further tensions, with Israel saying a Hezbollah missile unit commander had been “eliminated”.

Israel and the Iran-backed group have been exchanging near-daily cross-border fire for months.

Meanwhile, traders are also keeping a close eye on developments in the long-running Ukraine conflict.

Because bullion does not generate any interest, it benefits when central banks lower borrowing costs as its safe-haven status makes it more attractive to investors.

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