The price of gold rose in spot transactions by 0.5% to $2,124.70 per ounce (Shutterstock)

Gold prices are witnessing a historic rise, approaching unprecedented levels today, fueled by growing expectations of a possible interest rate cut by the US Federal Reserve next June.

The yellow metal rose in spot transactions 0.5% to $2,124.70 per ounce, which is only $11 less than the highest level ever reached on December 4, 2023, driven by investor optimism and a series of major economic events.

Ricardo Evangelista, chief analyst at Active Trades, said that we are likely to see gold “touch unprecedented levels soon with the potential reduction in US interest rates, and global geopolitical uncertainty and concerns about economic activity are likely to increase demand” for the yellow metal. .

Last week, prices rose by $50, due to weak US manufacturing data and easing price pressures.

Rafael Bostic, head of the Federal Reserve in Atlanta, expressed his belief that cutting interest rates twice by a quarter of a percentage point each would be appropriate by the end of the year.

Lower interest rates are expected to boost demand for gold, which is seen as a safe haven 

Investors are eagerly awaiting Federal Reserve Chairman Jerome Powell's testimony before Congress on Wednesday and Thursday, with the market closely monitoring any signs of a cut in interest rates.

According to Reuters, the Federal Reserve Monitoring Service of the CMA Group indicates that there is a 50% chance of a cut in US interest rates in June.

Lower interest rates are expected to boost demand for gold, which is traditionally viewed as a safe haven that does not generate returns.

The global market is also witnessing shifts in other precious metals, as platinum fell 0.9% to $889.60 per ounce, palladium fell 1.2% to $948.30, and silver rose 0.2% to $23.94.

Putting adds shine to gold stocks

In conjunction with the rise in gold prices, the SPDR Gold Shares exchange-traded fund broke to its highest levels across the daily, weekly and monthly time frames.

This notable movement is attributed to inflation fears, the role of this precious metal as a hedging tool, and geopolitical concerns.

The daily gold stock price index (SPDR) shows gains of 1.62%, after gains of 1.89% on Friday, with major signs confirming the upward trend according to Forbes analysis, which states that 3 gold stocks should be watched in the current market climate.

The daily gold stock price index, SPDR, showed gains of 1.62% after gains of 1.89% on Friday (Getty)

Alamos Gold: The

Canadian miner's daily price chart shows this resilience, remaining above October 2023 lows despite volatility.

Alamos Gold is back above the 50 and 200 day moving averages, indicating positive momentum in the near future.

Compania de Minas Buenaventura:

This mining company saw a significant rise in December, marked by the acquisition of a 19% stake by another mining company.

The stock has shown remarkable stability, remaining above $14 for several months, and today's gain of 3.90% puts it closer to $16.

Harmony Gold Mining:

Among the standout performers, the company's daily price chart reflects a new high today, in line with the rise in the base metal.

By trading above the 50 and 200 day moving averages, the company is showing its strength, with the $5.40 level providing stable support from last December to February 2024.

As gold continues its rapid rise and anticipation increases for what the US Reserve Chairman will deliver, investors are closely monitoring these gold stocks, which are showing promising trends amid the prevailing economic landscape.

Source: Al Jazeera + agencies