Gold reached record price of 2150$

Updated
Despite attempts by the Federal Reserve to dampen optimism, gold prices rose above record highs hit during the height of the pandemic on rising hopes for a U.S. interest rate cut early next year.

The precious metal rose more than 3% in early trading Monday, surpassing its all-time high set on Aug. 7, 2020, but has since given up much of that gain.

On Friday, Federal Reserve Chairman Jerome Powell's comments that monetary policy was "well in the restrictive zone" led to a sharp fall in the dollar and U.S. Treasury yields, boosting gold's rally since early October. This had a positive impact on the economy. A disinterested attitude affects money.
Chairman Powell then sought to push back on optimism about rate cuts, saying, ``It is too early to confidently conclude that we have reached a sufficiently tight stance or to speculate about when monetary policy will be eased.'' ' he warned. The probability of a March interest rate cut is about 55%, and the May interest rate cut is fully factored in.
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There’s been “a big momentum shift” on gold, said Chris Weston, head of research at Pepperstone Group Ltd. However, US labor data later this week could pose an element of downside risk to bullion, with bets on lower real rates into next year looking very aggressive, he said.

Gold rose 0.7% to $2,086.67 an ounce as of 10:31 a.m. in Singapore, following a 1.8% increase on Friday. Bullion’s 14-day relative strength index is now well above the threshold suggesting it may have been overbought. The Bloomberg Dollar Spot Index was steady, while silver, platinum and palladium all edged lower.

Bullion has surged around 15% from a low in early October. It benefited from a spate of haven buying following the Hamas attack on Israel, and then, in recent weeks, the rally got extra impetus from the growing expectations for US rate cuts. It’s been bolstered by a drop of 60 basis points in the US 10-year Treasury yield and a decline of almost 3% in a gauge of the dollar over November.
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Shares of gold miners were also up. Newmont Corp. rose as much as 3.6% in Sydney, while Northern Star Resources Ltd. climbed as much as 5.3%. Zijin Mining Group Co. jumped as much 6.4% in Hong Kong.
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