Gold Hits Another Record High, Markets Starting to Get Uneasy
The price of gold (XAU/USD) hit a new record high on Wednesday during the Asian session, reaching $4,639.77 per troy ounce. This increase indicates strong buying interest, especially at a time when the market is sensitive to interest rate issues and global risks.
The main driver came from December US inflation data, which signaled that core inflation is starting to cool. This has fueled speculation about a Fed interest rate cut, as price pressures are seen gradually easing.
In the interest rate market, investors are divided: some predict two cuts, while others predict three this year. These estimates are more aggressive than the median projection of Fed officials, which tends to be just one, giving gold added support.
In addition to interest rate factors, demand for safe-haven assets has also strengthened due to concerns about the Fed's independence and geopolitical risks. The market is focusing on a legal investigation related to Fed Chairman Jerome Powell's testimony, while tensions in Iran have revived speculation about US involvement. This combination has kept gold comfortably within the high range. (az)
Source: Newsmaker.id