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Money managers’ bets on the rise in the price of gold jumped to their highest levels in more than 4 years, as the precious metal recorded successive increases after the first interest rate cut by the US Federal Reserve since 2020..
According to Bloomberg, weekly US government data showed that hedge funds and other large speculators increased their net buying positions by 0.9% to 254,841 contracts as of September 24, reaching their highest levels since March 2020..
The price of an ounce of the precious metal reached its highest historical levels this week, recording $2,685.58, capping a series of record highs amid optimism about further cuts in interest rates by the US Central Bank..
Gold was able to end last week’s trading at an increase for the third week in a row and record a new historical level, despite its decline during Friday’s trading after US inflation data, which was in line with expectations..
The price of an ounce of global gold increased last week by 1.4%, closing the price at the level of $2658 per ounce. It had recorded the highest historical level at $2685 per ounce, while the opening price of the week was at $2621 per ounce..
Since the beginning of September, the global price of gold has increased by 6.2%, moving in the right direction to achieve the best quarterly performance since 2016, while since the beginning of the year the price of gold has increased by 29%, which is the best annual performance since 2010..
The US Federal Reserve’s decision at its last meeting to reduce interest rates by 50 basis points was the primary catalyst behind the series of historical levels that gold was recording on an almost daily basis..
