Gold prices topped $2,400 yesterday and were on track for a fourth straight weekly gain despite fading hopes of interest rate cuts.
The price of the precious metal has been on a largely uninterrupted rise since mid-February, when it cost about $2,000 an ounce, although it is not entirely clear what has been driving the increase.
Expectations of American interest rate cuts — the key upward driver of gold prices — have eased considerably after inflation in the United States surpassed expectations and after President Biden acknowledged that there was “more to do” on fighting price rises.
President Biden said this week that fighting inflation remained his “top economic priority” and that despite progress “we have more to do”
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High interest rates typically weigh on gold, making the metal unattractive compared with investing in US Treasury bonds.
Ross Norman, a veteran precious metals trader, said: “One