Tracking the surge: Gold reaches record levels

Gold has reached record levels this morning – sitting at US$3,680 ($5,519) per ounce as of 11.15am AEST – amid a softer US dollar and falling Treasury yields boosts demand for the precious metal. This news comes after the precious metals’ price reached an all time high on 11 September at US$3,640 per ounce. The record price came during the expectations of US rate cuts and rising geopolitical tensions.

Markets are currently bracing for a pivotal Federal Reserve meeting this week, as reported by Trading Economics, with policymakers expected to deliver the first interest rate cut since December.

Over the past month, gold’s price has risen 10.34% and is up 42.31% compared to the same time last year, according to trading on a contract for difference that tracks the benchmark market for gold.

Bullion trading arm Guardian Gold says the price is not rising on fashion or speculation – it is rising because of structure.

One of the most important drivers of gold’s rally in recent years has been due to methodical accumulation of bullion by central banks. Official institutions have purchased more than 1,000 tonnes in each of 2022, 2023, and 2024 – the highest sustained pace on record, as reported by Guardian Gold.

The total central-bank holdings now stand above 36,000 tonnes – a level not seen since the 1960s.

Source: https://mining.com.au/