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Gold prices (XAU/USD) climbs to a record high near $2,390 during the early Asian session on Friday.👉
The market expectation that the US Federal Reserve (Fed) will cut its benchmark interest rate this year is the main driver for the yellow metal. Additionally, the gold purchase by the Chinese central bank and the ongoing geopolitical tensions in the Middle East boost safe-haven flows, benefiting the gold price.
Analysts believe the US Fed to maintain its projection of three 25-basis points (bps) rate cuts this year despite concerns over recent higher-than-expected inflation reports.
The People’s Bank of China (PBoC) purchased gold for the 17th consecutive month in March, adding 160,000 ounces to its reserves of 72.74 million troy ounces, per Reuters. Chinese investors have shifted to gold as an alternative asset despite deteriorates in the property sector and equities prices in recent years.
Furthermore, the rising geopolitical risks also boost safe-haven assets like gold price. According to the US and it