Gold Surges to New Heights
Gold prices surged to a record high on September 23, driven by the recent interest rate cut from the US Federal Reserve and heightened demand for safe-haven assets amid geopolitical tensions in the Middle East.
As of 0524 GMT, spot gold rose 0.2% to $2,628.25 per ounce, after reaching an all-time high of $2,630.93 earlier in the session. This marks an increase of over 27% in 2024, positioning gold for its largest annual gain since 2010.
US gold futures also climbed, gaining 0.3% to $2,653.00.
Factors Supporting Gold Prices
Tim Waterer, chief market analyst at KCM Trade, noted that the current global economic climate—with declining interest rates and ongoing geopolitical risks—has created a favorable environment for gold. He stated, “If the Fed remains committed to its rate-cutting cycle in the coming months, any pullback in gold prices will likely attract buyers looking for better entry points.”
The Federal Reserve initiated its easing cycle with a half-percentage point rate cut on September 18, projecting another half-point cut by the end of the year and a total of one full point by 2025.
According to CME FedWatch, traders are anticipating 75 basis points in rate cuts by the end of 2024.
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