Gold prices have soared to their highest in six months, driven by speculation that interest rates have reached their zenith.
The precious metal has ascended to $2,009 per ounce, momentarily touching a six-month peak at $2,017.82.
This surge is aligned with the prevailing sentiment in money markets that anticipate no further hikes in interest rates in the US, where the Federal Reserve has set borrowing rates between 5.25% and 5.5%.
Market participants are also of the view that interest rates in the UK will not exceed the 15-year high of 5.25%, nor surpass the record 4% in the eurozone.
Concurrently, gold’s value is bolstered by a weakening dollar, prompting investors to gravitate towards safe-haven assets that maintain their worth.
In the past month, the global reserve currency has depreciated by 3.8% against the pound, now valued at 79p.
