Business Live TV Markets DOW 42,208.22 0.20% S&P 500 5,732.93 0.25% NASDAQ 18,074.52 0.56% Fear & Greed Index 66 Business / Economy Why gold prices are at record highs By John Towfighi, CNN 4 minute read Published 2:01 PM EDT, Tue April 9, 2024 Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. David Gray/Bloomberg/Getty Images New York CNN — From central banks to Costco customers, it seems everyone is buying gold these days. The price of spot gold reached $2,364 per ounce Tuesday after hitting record highs for seven straight sessions and trading at $2,336 per ounce Monday. Year on year, gold is up 16.5%. Investors who expect the Federal Reserve to cut its benchmark interest rate are the main force driving up prices, but the surge is boosted by other factors, including central banks — led by China — buying up gold to ease reliance on US dollars. Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. Gold is considered a resilient investment. When interest rates fall, gold prices tend to rise, as bullion becomes more appealing than income-paying assets like bonds. Investors also regard gold as a hedge against inflation, betting bullion will retain its value when prices rise.