Gold surged above $2,600 per ounce for the first time, driven by expectations of further U.S. interest rate cuts and heightened geopolitical tensions, especially in the Middle East. Spot gold rose 1.3% to $2,620.63, while U.S. gold futures closed at $2,646.20. This increase follows the Federal Reserve’s recent interest rate cut, enhancing gold’s appeal as a non-interest-bearing safe-haven asset. Gold prices have risen 27% in 2024, their largest annual gain since 2010, as investors seek protection from global uncertainties.
However, analysts warn the rally may correct soon, citing marginal ETF inflows and reduced demand in top markets like China and India. Despite this, geopolitical risks and a weak U.S. dollar could continue to support gold’s rise.
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