Gold prices set a new record on Monday as a recent inflation report buoyed optimism that the Federal Reserve will cut interest rates in June.
Gold futures on Monday were trading at $2,275, up about $37 or just over 1.6% — the highest price since the contract’s creation in the 1970s. The upward momentum is in large part due to expectations that the Fed may cut interest rates soon, an action that would be expected to boost asset prices.
Driving some of the sentiment about rate cuts is Friday’s report on the personal consumption expenditures index, which is the Fed’s preferred gauge of inflation.
From January to February, inflation rose 0.3%, which was slightly less than expected.
Core PCE inflation, a measure of inflation that strips out volatile energy and food prices, fell slightly to a 2.8% year-over-year rate.
Following the
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