Gold extends gains to unprecedented levels

Gold prices rose to record new records on Thursday and are on track to record their seventh daily rise in a row, amid weak US economic data and indications from Federal Reserve Chairman Jerome Powell regarding possible cuts to interest rates in the coming months if inflation recedes.

According to Reuters, the precious metal increased in spot transactions by 0.5 percent to $2,159.79 per ounce by 0432 GMT, after recording its highest level ever at $2,161.09 earlier in the session. US gold futures increased 0.4 percent to $2,167.00.

Gold received support on Wednesday after Powell indicated that there will likely be interest rate cuts over the coming months “if the economy develops broadly as expected” along with more evidence of lower inflation. Powell will speak again later on Thursday.

Low interest rates enhance the attractiveness of gold, which does not generate returns.

As for other precious metals, silver rose in spot transactions 0.4% to $24.25, platinum fell 0.1% to $906.82 per ounce, and palladium fell 0.8% to $1,033.44.