Above from $2,500 found for the first time the price of gold, as expectations that the US Federal Reserve (FED) is moving towards a rate cut increase.

The spot price of the yellow metal rose 1.8% on Friday, surpassing the previous record set last month, as disappointing data on the US housing market they reinforced expectations for a more immediate and greater reduction rates from the FED reports Bloomberg, which adds that low interest rates are broadly positive for gold.

Since the beginning of the year the precious metal up 20% amid growing expectations for monetary easing but also for greater purchases of gold by central banks. Also, its demand has increased as an investment haven due to heightened geopolitical risks, including tensions in the Middle East and Russia’s conflict with Ukraine.

Gold started moving higher a few months ago, surprising analysts and investors as there was no clear macroeconomic catalyst to justify the rally. In fact, it held on to gains even as traders took a step back in their predictions about the timing of rate cuts. Lately, with US officials expecting interest rate cuts soon, the yellow metal has started to move higher again.

Plenty of recent US macroeconomic data have convinced the markets that the FED is now on the verge of reducing the cost of borrowing from the high of more than two decades. Of course, there is debate about how many points the FED will cut interest rates, as some economic data gave conflicting messages about the state of the US economy.

Gold investors “usually favor a more aggressive policy than the Fed on the monetary easing front” stated the Bart Melekits head of commodity investment strategy TD Securities. He estimated that the prices could strengthen even further, to $2,700 in the following quarters.