Gold Reaches Another Record High
Gold rose to another record high, building on Thursday’s surge of nearly 2% as traders added bullish wagers ahead of a widely expected Federal Reserve interest-rate cut next week.
Bullion climbed as much as 1% to $2,583.45 an ounce on Friday, putting it on track for a weekly gain of more than 3%. Gold has surged by more than a quarter this year, supported by the Fed’s path to monetary easing. Central-bank buying and strong haven demand due to conflicts in the Middle East and Ukraine have helped the advance, while interest from retail investors is also picking up.
Fed Interest Rate Cut Expectations
The surge in gold prices can be attributed to expectations of an interest rate cut by the Federal Reserve next week. The prospect of looser monetary policy tends to weaken the dollar, making gold more attractive as an alternative investment.
Global Tensions and Safe Haven Demand
In addition to the Fed’s policy, ongoing conflicts in regions like the Middle East and Ukraine have fueled strong demand for gold as a safe haven asset. Geopolitical uncertainties often drive investors towards assets like gold, which tend to hold their value in times of turmoil.
Retail Investor Interest
Another factor contributing to the rise in gold prices is the increased interest from retail investors. As economic uncertainty persists, more individual investors are turning to gold as a store of value and a hedge against market volatility. This influx of retail demand is further supporting the upward momentum in gold prices.
