The spot price of gold briefly passed $2,200 an ounce on March 21—a new world record.
At press time, the yellow metal had retreated below that benchmark, to $2,161 an ounce.
Even so, analysts believe the rally isn’t over: Aakash Doshi, Citi’s North America head of commodities research, told CNBC that the price may hit $2,300 in the second half of the year.
The new high is particularly impressive since gold’s price just reached $2,100 an ounce for the first time in December, and didn’t top $2,000 an ounce until 2020.
Analysts credited the record-breaking rise to Federal Reserve chairman Jerome Powell’s remarks Wednesday that the Fed will likely cut interest rates later this year, as inflation has largely cooled. (Gold prices tend to increase when interest rates fall.)
World Gold Council head of research Juan Carlos Artigas attributes gold’s bull run to other factors, including the dollar’s weakness against other currencies, greater market volatility, and a drop in 10-year U.S. Treasury yields.
In addition, central banks have upped their gold purchases, Artigas has said.
(Photo: Getty Images)
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