London: Gold prices nailed another historic peak Tuesday over the growing prospect of interest rate cuts later this year, while European equity markets wobbled as traders returned following the long Easter holiday weekend.
The haven precious metal advanced as high as $2,266.85 per ounce in morning London deals to extend its blistering record-breaking run, driven also by geopolitical tensions in Europe and the Middle East.
Oil extended Monday's gains as traders fretted also over supplies and Israel's war against Hamas in Gaza.
Gold is "pushing sharply higher as we move within two months of the expected June kick-off for European Central Bank, Bank of England, and Federal Reserve easing", said Scope Markets analyst Joshua Mahony.
Many of the world's major central banks are tilting toward cutting interest rates as inflationary pressures subside somewhat.
City Index analyst Matthew Weller noted that the price of gold tends to move inversely with interest rates.
"When interest rates fall, gold becomes relatively more attractive compared with fixed income assets such as bonds, which offer weaker returns in a lower interest rate environment," noted Weller.
