Gold prices hit historic high after 2% surge
2 Min Read
As of 15:53 GMT, April gold futures on the New York Comex exchange have risen by $56.96.
-
In this Nov. 8, 2006 file photo, gold bars are on display at the "Gold" exhibit in the American Museum of Natural History in New York. (AP)
Gold prices surged by 2% on Thursday, surpassing $2,850 per troy ounce for the first time, according to trading data.
As of 15:53 GMT, April gold futures on the New York Comex exchange rose by $56.96, reaching a historic high of $2,850.46 per troy ounce.
Previously, Federal Reserve Board of Governors member Michelle Bowman stated that while the US Federal Reserve is keeping an eye on the price of gold, it is not prioritizing it over other indicators.
"Yes, we were thinking about it. I don't know that we're thinking about it more strongly than any other indicator at this point," Bowman said during a discussion hosted by the Manhattan Institute in April.
The historic increase in the price of gold holds significance due to its nature as a dollar-denominated asset. When the value of gold rises, it often indicates a decrease in the value of the dollar.
An increase in the price of gold can reflect various factors, including a loss of confidence in the dollar. When investors perceive higher risks or uncertainties associated with the dollar, they may seek refuge in gold as a safe-haven asset, thus driving its price up.
Read more: Gold price hits all time high; USD, Treasury bonds' yields diminish
