LONDON (dpa-AFX) - After the recent record run, the gold price came under pressure on Tuesday. A troy ounce (around 31.1 grams) last cost 2161 US dollars. In the morning, the price of gold was still around 20 dollars higher. Last Friday, the price of gold on the London stock exchange had risen to a record high of 2195 dollars.

The gold price was weighed down in the afternoon by consumer price data from the USA. Consumer prices rose by 3.2 percent in February compared to the same month last year. Economists had expected an unchanged inflation rate of 3.1 percent on average. This dampened expectations that the Fed would cut interest rates in the near future. "US inflation is proving to be more stubborn than expected a few months ago," commented Dirk Chlench, economist at Landesbank Baden-Württemberg. Higher prices for housing and fuel are responsible for the increase. "A reduction in US key interest rates before June 2024 is now likely to be off the table for good," wrote Chlench.

The gold price had previously been driven primarily by speculation of falling key interest rates in the US and the eurozone. If interest rates fall, one disadvantage of the interest-free gold investment fades into the background to some extent. Gold, which is considered a crisis currency, is also in demand due to numerous geopolitical risks such as the wars in Ukraine and Gaza. The third factor in favor of rising gold prices is the consistently high demand from some major central banks, including China in particular.

According to Commerzbank expert Thu Lan Nguyen, the arguments for the recent rise in gold prices are not very convincing. Due to ongoing inflation risks, a pronounced cycle of interest rate cuts in the USA is not expected. The further upside potential for gold is therefore limited in the medium to long term. "We are therefore 'only' raising our gold price forecast for the end of this year and the end of next year from 2100 dollars per troy ounce to 2200 dollars."/jsl/lfi/jha/