Central bank demand propels safe-haven gold to record peak

Gold prices hit a record high for a seventh straight session on Monday, fuelled by central bank purchases and geopolitical tensions, while strong economic data failed to dull bullion's allure, reports Reuters.
Spot gold was steady at $2,330.83 per ounce, as of 9:45 a.m. ET (1345 GMT), after hitting a record high of $2,353.79 earlier in the session. US gold futures gained 0.3per cent to $2,350.80.
China's central bank added 160,000 troy ounces of gold to its reserves in March, it said. Turkey, India, Kazakhstan, and some eastern European countries have also been buying gold this year.
"The market is pricing rate cuts by June despite strong economic data. But, if we continue to see strong data, which indicates that Federal Reserve is in no hurry to cut rates, then gold will not be able to sustain the gains," said Bart Melek, head of commodity strategies at TD Securities.
"Central bank buying and geopolitical tensions are other supportive elements," Melek added.
Traders are pricing in a 52per cent prospect of a first 25 basis point cut in June, CME Group data showed. However, data on Friday showed US job growth blew past expectations in March, calling into question the timing of rate cuts.
Lower interest rates reduce the opportunity cost of holding bullion.