The Gold price rose to a record level not only in US Dollars (USD), Commerzbank commodity analyst Carsten Fritsch notes.

Gold price likely to rise beyond 2,500 EUR

“In Euro terms, too, Gold has never been more expensive, at 2,500 EUR per troy ounce. In addition to the rise in the Gold price in USD, the recent weakness of the euro also contributed to the price increase.”

“Yesterday, the ECB cut its key interest rate by 25 basis points for the third time since June. ECB President Lagarde did not give any clear indications of a further interest rate cut in December at the press conference.”

“However, the market, like us, assumes that interest rates will then be cut again in view of the expected weaker economic data and the decline in inflation. Lower interest rates are positive for Gold because they reduce the opportunity cost of holding Gold. Therefore, a further price increase beyond the 2,500 EUR per troy ounce mark is likely.”