Gold's Record-Breaking Rally Could Indicate Central Banks' Concerns About Inflation, Regardless of Powell's Comfort

Gold futures have hit a new record high for the fourth day in a row after Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts later this year. Powell's announcement sparked a surge in gold prices, which were already on the rise due to various global factors such as tensions in the Middle East, disruptions in shipping, economic challenges in China, and uncertainty surrounding the upcoming U.S.

presidential election. The price of gold reached an all-time high of $2152.25 per ounce, while palladium prices jumped by almost 10% to $1053.

83 per ounce and platinum prices rose by about 3% to $906.70 per ounce. Comex gold for March delivery closed up 0.

8% at $2150.30 per ounce, showing a 5.7% increase over the past five trading sessions.

Similarly, March silver saw a 2.1% increase to $24.272 per ounce, its highest value since late December.

Analysts suggest that Powell's comments about potential rate cuts have led to a shift towards gold as a diversification strategy for global central banks looking to reduce their dependency on the U.S. dollar.

As uncertainties continue to mount in the global economy, gold remains a popular safe-haven asset for investors seeking stability and security.