BETS on lower interest rates have sparked a gold rush with the price of the precious metal breaking records.The Pound also hit its highest level against the dollar in more than a year yesterday.6The price of gold has broken recordsCredit: Getty6The price of gold is up 21 per cent this year6The recent rally has been driven by markets anticipating a speech by the Federal Reserve chief Jerome Powell on FridayCredit: AFPSterling briefly broke through $1.30 as traders raise their bets that the US Federal Reserve will cut rates next month. Expectations the US central bank will follow the Bank of England in lowering rates has also powered gold prices beyond $2,500 an ounce in the past few days.Gold is up 21 per cent this year. An ounce is £1,924.30 and a 100g gold bar from the Royal Mint costs £6,520.16.As interest rates fall, investors tend to switch from higher-interest paying bonds to gold, which offers safer returns.Wayne Gordon, analyst at UBS, says prices are “heading toward $2,700 an ounce by around the middle of 2025”.The recent rally has been driven by markets anticipating a speech by the Federal Reserve chief Jerome Powell on Friday.Mr Powell will set out his expectations for the US economy — hit by recession fears amid a weakening jobs market.BoE governor Andrew Bailey will also speak at the conference.Analysts at CITI will be focused on whether he will signal higher interest rates have done the job of tackling inflation.What is the Bank of England base rate and how does it affect me?This could have further impact on both gold and Sterling. Bankers at RBC have raised their gold price forecasts to $2,600 by the middle of next year and anticipate it will stay above $2,000 an ounce until at least 2028.A brutal stock market sell-off at the start of the month triggered investors to build up gold reserves.The Chinese central bank has also been a big buyer of gold over the past two years, largely to cushion its economy from a property downturn.CASH-strapped Brits are increasingly turning to pawnbrokers for help, boosting half-year profits at H&T by 12.5 per cent to £9.9million.OIL services firm John Wood Group has slumped to a £770million half-year loss after a hefty write-down on the value of past acquisitions. The Scottish firm is also dealing with costs after a recent failed takeover bid from Emirati rival Sidara.HOUSE OF FR-ASOSASOS investors — including Frasers Group head Mike Ashley — have voted for a “value creation” plan to hand its boss a bumper bonus if the share price doubles.CEO José Antonio Ramos Calamonte will bag a £1.7million boost on top of his £838,000 salary if Asos’s share price exceeds £6.70, a 91 per cent increase from the online fashion retailer’s 350p-a-share trading price.6ASOS investors have voted for a ‘value creation’ plan to hand its boss a bumper bonus if the share price doubles6Frasers Group head Mike Ashley is among investors in the online fashion retailerCredit: AlamyAnd on the day of the vote, Frasers Group told how it had upped its Asos stake again from 20 to 22 per cent.BUSINESS WORLD REELS OVER DISASTERTHE business world yesterday paid tribute to the missing Brits following the Sicilian superyacht disaster.Companies shared their thoughts for Autonomy co-founder Mike Lynch, and his daughter Hannah, Hiscox and Mogan Stanley chair Jonathan Bloomer and his wife Judy, and Clifford Chance partner Chris Morvillo and his wife, Neda. 6Autonomy co-founder Mike Lynch is among the missing Brits following the Sicilian superyacht disasterCredit: AlamyHiscox boss Aki Hussain said: “Our thoughts are with all those affected, in particular our chair, Jonathan Bloomer, and his wife Judy, who are among the missing, and with their family as they await further news.”Clifford Chance said it was “shocked and deeply saddened”. Matt Clifford, the chief executive of Entrepreneur First, paid tribute to Mr Lynch saying that he was “one of the first people to take us seriously and was extremely kind”.Brent Hoberman, founder of Lastminute.com and Founders Forum, told Radio 4: “Mike supported other entrepreneurs with capital and his brains, attracted top technology talent and advised and helped them.”Mr Lynch had been embroiled in a fraud legal battle, which he was acquitted from in June. The yacht disaster came days after Mr Lynch’s co-defendant Stephen Chamberlain died after being hit by a car.Cybersecurity firm Darktrace, where Mr Chamberlain was chief operating officer, said: “He was much loved by his colleagues and leaves many friends at Darktrace.”TESCO has raised the price of a Meal Deal for the first time in two years.Food inflation may be slowing, but the supermarket is putting its lunch promo up from £3.40 to £3.60 for Clubcard members, and from £3.90 to £4 for shoppers lacking a loyalty cardBT SHARE DROP IN SKY DEALBT GROUP’s shares fell yesterday after client Sky said it will roll out broadband services on CityFibre — BT’s fast-growing competitor.CityFibre has 3.8million customers and plans to expand to 8million by December 2025.After news yesterday of the tie-up, almost £1billion was wiped off BT as its shares dropped by almost 8 per cent.It had been riding a wave since new boss Allison Kirkby unveiled a sharpened turnaround plan in May.Amber Pine at Sky said: “Sky’s partnership with CityFibre will mean we can provide fast, reliable and great value broadband to more homes.”AJ Bell analyst Danni Hewson said BT shares dropped due to “fears of an enhanced competitive threat. But City- Fibre’s modest scale and focus on rural areas suggest it shouldn’t be a huge issue.”