Due to safe-haven demand and U.S. inflation figures, gold futures hit a new record high. After peaking at $3,006.70/oz earlier in the day, futures are up 0.4% at $3,003.40/oz. According to a report by ING analysts, the Federal Reserve’s expected easing of monetary policy has been bolstered by modest U.S. inflation data. According to ING, the market has priced in an additional 25 basis points of easing in June, with an overall easing of about 70 basis points anticipated for the year. Generally speaking, lower interest rates increase the allure of non-interest bearing bullion. Concerns that tariffs may increase inflation and limit economic development, leading investors to seek safe-haven assets, have also contributed to the gold market’s surge, according to ING.
