Gold prices climbs to a record high near $2,441 during the early Asian trading hours on Monday. The bullish move of the precious metal is bolstered by the renewed hopes for interest rate cuts from the US Federal Reserve . Traders anticipated nearly two quarter-point cuts from the Fed this year, with November being the most likely startingpoint Furthermore, the People's Bank of China purchased gold for the 18th straight month in April, adding 60,000 troy ounces of gold to its stash in April.
In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began.