Gold updates the record, soars above 2,300 dollars

Gold updates the record soars above 2300 dollars

(Finance) – Geopolitical tensions and expectations of lower US interest rates are pushing the gold rush which marks yet another record. The precious metal which has set several records in recent weeks, even in its role as a safe haven asset, rose overnight to 2,322 dollars an ounce, settling at 2,315 dollars in the morning.
Yesterday the number one of the Fed, Jerome Powell, took its time on rate cuts. The banker said “cutting financing costs would probably be appropriate” at some point this year.

The data on the economy and inflation – he explained – have not “materially changed” the picture, it is too early to say whether the recent inflation data are just a temporary leap or not. A clear message that the Fed is not in such a hurry to cut rates and needs more evidence of slowing prices before cutting them.

The Fed “has time to decide” on possible cuts and wants to have one greater confidence in the downward trajectory of inflation before reducing the cost of money – added the Fed governor – adding that given the strength of the economy and the progress made so far on inflation, “we have time to let the incoming economic data guide our decisions”. If the economy “evolves” as we expect, most Fed members probably believe a rate cut at some point this year is appropriate“Powell said.