Gold reaches new all-time high on expectations of interest rate cuts in the U.S.

The price of gold reached a new all-time high last Monday, marking a significant milestone in the precious metals market. This notable increase occurred in a context of growing expectations of a possible interest rate cut by the US Federal Reserve, which prompted investors to seek refuge in assets considered safe such as gold. Simultaneously, silver also experienced an increase in its value, reaching levels not seen in over 11 years. Specifically, spot gold recorded a 0.5% increase, reaching $2,427.21 per ounce, with a peak of $2,449.89 at the beginning of the session. US gold futures also showed a 0.6% increase, reaching $2,431.10, reflecting investors' confidence in this precious metal amid global economic uncertainty. According to Han Tan, Chief Market Analyst at Exinity Group, the escalation of the gold price to new historical records is partly due to speculation about a possible interest rate cut by the Federal Reserve, especially after US inflation data showed slower growth than expected in April. This situation has fueled expectations of a potential rate cut in September. Lowering interest rates reduces the cost of holding assets like gold, which do not generate returns on their own but become attractive in times of market volatility and turbulence. In this way, gold becomes a safe haven for investors in times of economic and geopolitical uncertainty, such as those currently experienced worldwide. Furthermore, the recent news of the death of Iranian President Ebrahim Raisi in a helicopter accident has further destabilized geopolitics, contributing to strengthening the demand for gold as a safe haven asset. Dick Poon, Managing Director of Heraeus Metals Hong Kong Ltd., highlighted that geopolitical conflicts are complicating the global landscape and fueling risk aversion among investors. On the other hand, China, one of the largest consumers of gold and industrial metals, announced measures considered "historic" to stabilize its real estate sector, which has been facing difficulties due to the economic crisis. This decision by the Chinese government could have an impact on both the gold market and other industrial metals, given China's significant role in the global demand for these assets. As for silver, its price experienced a slight decrease of 0.7%, standing at $31.27 per ounce, despite reaching its highest level in over a decade. On the other hand, platinum and palladium also showed downward movements, with platinum declining by 1.3% and palladium losing 0.7%, reflecting the current volatility and complexity in the precious metals markets. In summary, gold continues to be a safe haven asset for investors in a context of economic and geopolitical uncertainty, with interest rates at the center of attention as a determining factor of its value. The evolution of these prices and the influence of external factors will continue to be key topics to closely monitor in the coming days in international financial markets.