The price of gold continued to rise to a new record high on Monday, boosted by signals that the US Federal Reserve is nearing the point of cutting interest rates, as well as geopolitical tensions and strong demand for the yellow metal from China, according to Bloomberg, taken by Agerpres.

Spot gold rose to an all-time high of $2,265.73 an ounce on Monday, up 1.6% from Thursday’s close, after setting a series of record highs in recent sessions.

Statistics released Friday after financial markets were closed showed that U.S. core inflation, the Fed’s favorite gauge of inflationary pressures, eased in February while consumption rose. This provides new arguments for lowering the cost of borrowing, even if the US central bank has taken a cautious tone.

The more positive statistics have sent the gold price up about 14% since mid-February. The prospect of easing monetary policy by major central banks, as well as rising tensions in the Middle East and Ukraine, contributed to this growth. There was also significant gold buying by central banks, particularly in China, where consumers have been hoarding gold amid problems in Asia’s largest economy.

Following the release of inflation data in February, Federal Reserve Chairman Jerome Powell said the data was “in line with expectations,” adding that the Fed was in no rush to cut interest rates.

However, financial markets estimate there is a 61% chance the Fed will cut interest rates in June, up from 57% on Thursday. Generally, lower interest rates are positive for gold, which is not attractive to investors.

“Inflation data, including Powell’s comments, gave gold a new boost and the market is increasingly confident that the Fed will start cutting interest rates in June,” said Warren Patterson, an analyst at ING Groep.

The positive outlook for gold was supported by a number of important banks. Among them JPMorgan Chase & Co. Last month, it was estimated that the price of an ounce of gold could reach $2,500 this year. In addition, Goldman Sachs Group analysts believe there is potential for gold to reach $2,300 per ounce in the context of low interest rates.