Gold price hits record high

Spot gold traded as high as $2,141.79 per ounce.

Russ Mould, investment director at AJ Bell, said: "Record highs in the US, Japanese and German stock markets continue to make headlines, as does Bitcoin’s gallop toward its November 2021 zenith, but another, much more unsung commodity is also breaking new ground and that is gold, which is breaking above $2,100 an ounce for the first time.

"The metal’s rate of progress might be less spectacular, but its steady gains may reflect the ongoing increase in government debt around the globe, but particularly in the USA.

"It is unfashionable to focus on gold, especially when the Magnificent Seven are doing so much to propel US equities to new highs (or at least five of them are, anyway), and it is easy to dismiss the case for including the precious metal in even the most balanced of portfolios."

SP Angel said the move higher in gold has been supported by a weaker dollar, but noted that US Treasury yields have not moved to the same extent.

"Central banks have been a major supporter of gold, with buying coming from Russia and China," it said. "We expect a cutting cycle to be supportive of gold, and the recent improvement in optimism over Fed rate cuts has been supporting bullion.

"Markets now expect a 52% chance of a 25 basis points rate cut in June, and a 13% chance of a 50bp cut.

"Hedge funds reportedly boosted net bullish gold bets to three-week highs as of February 27th, with some short covering also suggested."