The price of gold It is currently increasing enormously. At one point on Thursday night, $2,220 was paid for a troy ounce (about 31.1 grams) on the London Stock Exchange, a higher amount than ever before.

In the morning, the price of gold fell slightly again, settling at $2,207. That's about one percent above the previous day's price.

Federal Reserve's planned interest rate cuts make gold attractive

Market observers explained the rise in prices with a weakening of the dollar. Context: On Wednesday night, the US Federal Reserve announced three interest rate cuts throughout the year.

With the prospect of falling interest rates in the US and a friendly mood in financial markets, the dollar came under significant pressure. Since gold is normally traded in dollars, a weakness in price makes the product cheaper. This increases demand and provides a boost to the price of gold.

Gold prices have been rising since early March.

The price of gold has been on an upward trend since early March. During this time, the price of the precious metal has risen almost $200. In addition to interest rate expectations, gold purchases by central banks are also considered an important price driver.

In particular, in recent months China's central bank has appeared as a buyer in the gold market. Additionally, gold prices were also supported by geopolitical risks in the Middle East.

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