The gold price today set a new all-time record, surpassing $2,200 an ounce, boosted by the prospect of interest rate cuts this year, as confirmed yesterday, Wednesday, by the US Federal Reserve.

Gold reached as high as $2,220 an ounce, according to Bloomberg, beating previous records set in March.

Since mid-February, the price of the precious metal has jumped nearly 12%.

Asian stock markets and the New York Stock Exchange rose significantly and the dollar fell after the US Federal Reserve (Fed) reaffirmed its forecast for three rate cuts in 2024 despite persistent inflation.

This rise in the gold price was encouraged by a weaker dollar, which makes this precious metal more attractive as a safe haven against a backdrop of heightened geopolitical risks, particularly following the outbreak of war between Israel and Hamas.

Interest rate cuts also favour the yellow metal, which does not generate income as they make other holdings less attractive.

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Financial group Macquarie has predicted that gold prices will hit new highs in the second half of the year.

Physical gold markets have boosted prices, but Macquarie analysts have attributed the recent rise in prices to “significant futures buying”.

“Central banks, which have bought historic levels of gold over the past two years, continue to be strong buyers well into 2024,” said Global Gold Council head of central banking, Shaokai Fan.

These purchases have boosted gold prices despite high interest rates and a strong dollar, market watchers told CNBC.