Gold Flirts With New Record High on US Interest Rate Outlook
- Precious metals tend to perform well when rates drop
- Central-bank demand is helping to offset profit-taking
Gold casting grain.
Photographer: Stefan Wermuth/BloombergThis article is for subscribers only.
Gold — a safe-haven asset that generally thrives during times of lower interest rates and geopolitical upheaval — is understandably having a moment.
As investors bet the Federal Reserve will trim rates in June following a slew of mixed US data reports, the precious metal that’s stored in both federal depositories and individuals’ sock drawers is now within striking distance of a new all-time high. Gold rose above $2,100 an ounce on Monday, quickly nearing the metal’s $2,135.39 peak.