06.02.2025 09:40
Safe haven gold prices are breaking record after record due to tensions in the global economy and expectations of interest rate cuts. The price of gold per ounce started the day close to a record level at $2,860. Yesterday, the price of gold per ounce renewed its peak at $2,882. The monthly increase in gold is approaching 3%.
The global trade war ignited by the US is driving up the prices of the yellow metal. Expectations that interest rates will decrease are also supporting this rise. Yesterday, the gram gold, which broke a record at 3,327 lira, started the new day at around 3,309 lira. The quarter gold changed hands at 5,440 lira.
LOW INTEREST RATE EXPECTATIONS IN THE US
US Treasury Secretary Scott Bessent noted that President Donald Trump wants lower interest rates, rather than the Federal Reserve lowering interest rates. Bessent stated, "If we can free up the economy, if we can get this tax bill done, if we can lower energy prices, interest rates will take care of themselves."
Data from the US indicated that economic activities may remain moderate in the coming months. The ISM services index in the US fell by 1.2 points to 52.8 in January compared to the previous month. This decline revealed a loss of momentum in the services sector, which constitutes the largest part of the economy. The data strengthened investors' expectations for two interest rate cuts from the Federal Reserve. On the other hand, geopolitical tensions also increased the demand for safe havens. Trump's plan to invade Gaza and his expressed interest in a new nuclear deal with Iran supported the rise of the yellow metal.