Gold prices climbed to new record levelsgetting a boost from expectations for reduction in US interest ratesbut also due to the appeal it has as a safe haven.

The spot price of gold strengthened up 1.32% to $2,265.53 an ounce, with U.S. futures up more than 2% to $2,286.39 an ounce.

“It’s an exciting time for gold” Joseph Cavaton, strategist at the World Gold Council, told CNBC. “What’s driving the price up, in my view, is that many speculators are strengthening their view that the Fed will cut interest rates.”

It is noted that analysts expect interest rates to be cut by the Fed in May or June.

“In China, private investors have turned to gold as the real estate sector has been doing quite badly lately,” according to Caesar Bryan, fund manager at investment firm Gabelli Funds. He emphasized that China’s economy has remained weak, while neither the country’s stock market nor its currency have performed well.

The rally in the yellow metal has so far been fueled by strong markets that central banks have made globally in an effort to diversify their reserve portfolio, due to geopolitical risks, inflation and the weakness of the US dollar, commented Cavatoni of the World Gold Council.