The price of gold has surged to a record high above $2200 per ounce, driven by the weakening dollar and investor optimism that the Federal Reserve may cut interest rates in June, despite sharp inflation growth in the US.
Geopolitical tensions have also contributed to the attractiveness of gold as a safe-haven asset. The Dollar Index (DXY) has declined by 0.2%, making gold more appealing to international buyers.
Analysts speculate that gold investors are in a favorable position as there is a possibility of significant price growth if the Fed cuts interest rates or inflation concerns persist.
Attention is now focused on upcoming economic indicators such as US retail sales and the Producer Price Index.
Additionally, spot platinum, palladium, and silver have also shown growth during recent trading.