Gold prices are trading in today’s European session above 2200 levels.
On Thursday, gold prices surged to unprecedented levels, driven by multiple factors including the Federal Reserve's stance on interest rates, buying trends among global central banks, and evolving currency dynamics.
This notable increase is in line with expectations of forthcoming rate reductions and the intricate global economic environment. The Federal Reserve's forecast of three rate cuts for the year has resulted in a decrease in the value of the U.S. dollar and bond yields.
This adjustment reduces the opportunity cost associated with holding gold, which doesn't yield interest, thereby amplifying its attractiveness, particularly for investors utilising alternative currencies.
