Gold hits record high as Fed prepares for rate cuts
Gold just hit a record $3,674 per ounce, thanks to a weaker US dollar and falling Treasury yields.
Markets expect the US Federal Reserve to cut rates this week—the first time since December—which is making gold even more appealing as a safe place for money.
Cheaper dollar makes gold more appealing
A cheaper dollar means gold is more affordable for buyers outside the US.
With inflation rising and the US job market cooling off, experts think more rate cuts could be coming this year—making gold an even stronger hedge if you're worried about economic ups and downs.
Gold's climb explained
Gold tends to climb when interest rates and bond yields drop since there's less incentive to hold cash or bonds.
The Fed is juggling inflation and mixed economic signals right now, which boosts chances of further rate cuts soon.
Plus, with both the dollar index and 10-year Treasury yields slipping lately, gold has easily cleared key price barriers near $3,700 per ounce.