Gold and Bitcoin Price Boosts Ahead of US Inflation Report: Investors Optimistic for Interest Rate Cuts

On Monday, gold reached a new record high of over $2,350 per ounce on the global market, while Bitcoin also surpassed $72,000 for the first time since mid-March. The price increases come ahead of the release of the US inflation figure later this week.

Investors in gold and digital currencies are optimistic that inflation in the US has cooled enough for the Federal Reserve to begin cutting interest rates this spring. The central bank has indicated its intention to lower interest rates this year but wants to see more evidence that inflation is under control before doing so.

On the London gold market, gold prices rose by 0.6% to $2,360 per ounce on Monday. Gold has already increased in value by more than 12% this year due to geopolitical tensions, increased demand for gold and significant amounts of gold added by the Chinese central bank to its reserves.

UBS analysts predict that gold will reach $2,500 by the end of the year. Lower interest rates are generally positive for riskier investments like gold and cryptocurrencies, which is contributing to their current price increases.