Wall Street Live

Gold Hits Record $2,300 as Fed Cuts Rates, Sparks Rally

By Bill Bullington

4/3, 22:23 EDT
  • Gold prices surged past $2,300 an ounce, marking a new record high and continuing its upward trend. The Federal Reserve's commitment to rate cuts, despite recent inflation spikes, is expected to further drive gold prices up.
  • Fed Chair Jay Powell's reaffirmation of the central bank's rate-cutting path has bolstered investor confidence in gold, which tends to perform well in a low-interest-rate environment. The recent record-breaking run of gold, with sporadic large movements, may face a short-term correction as it appears overbought.
  • Central banks have been key players in gold's rally, selling US Treasuries to purchase gold and diversify their reserves away from the dollar. Their increased gold purchases over the past two years have contributed to the metal's strong performance.