The value of gold reached a record high on Friday, 16th August, 2024 due to a combination of factors: expectations that the U.S. Federal Reserve might lower interest rates in September, leading to a decrease in the dollar’s exchange rate, and growing geopolitical tensions in the Middle East, which have increased global economic uncertainty. Gold prices in the spot market rose by 1.7%, settling at $2,498.72 per ounce, while U.S. futures increased by 1.8% to $2,537.80 per ounce.
The weakening dollar made gold cheaper for buyers in other countries, further driving demand. Analysts are closely watching for more details from upcoming Fed meetings, particularly speeches by Fed Chairman Jerome Powell. Additionally, ongoing geopolitical conflicts, such as the potential involvement of Iran in Middle Eastern tensions and the ongoing Russia-Ukraine war, are contributing to the rising gold prices. Other precious metals saw mixed results, with silver prices increasing and platinum and palladium prices slightly decreasing. The demand for gold has been rising globally, with record amounts mined and purchased by central banks in recent months.
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