In global markets, gold is on the rise fueled by predictions that the U.S. Federal Reserve (FED) will lower interest rates this year, Azernews reports.

The sharp increase in the price of gold persists, reaching a new record today.

In the past six sessions, bullion has gained approximately 7%, with the price of one ounce of gold reaching $2167 today. Over the past year, gold has appreciated by more than 18%.

Federal Reserve Chair Jerome Powell stated on Wednesday that it would be appropriate to begin reducing interest rates. Citigroup has raised its gold price forecast for the next three months to $2200 per ounce and increased its forecast for the next 6-12 months to $2300.

Lower interest rates enhance the attractiveness of gold. Typically, when the FED reduces interest rates, the U.S. Dollar depreciates. It is expected that central banks will continue their gold purchases amid geopolitical uncertainties. The slowdown of the Chinese economy is also anticipated to impact global economic growth. Therefore, in an uncertain financial environment, gold remains a secure investment for banks and investors. These factors contribute to the ongoing appreciation of gold.