Gold prices reach new record high amid escalating geopolitical tensions in Middle East
Date
9/25/2024 4:17:21 AM
(MENAFN) Gold prices have reached a new record high, driven by expectations of further monetary easing from the U.S. Federal Reserve and escalating geopolitical tensions in the Middle East. Spot gold increased by 0.3 percent to USD2,636.85 an ounce, following a record high of USD2,638.37 earlier in the session, with U.S. gold futures also rising 0.4 percent to USD2,661.60.
The surge in gold prices reflects concerns over the Middle East, particularly following Israeli airstrikes on Hezbollah positions in Lebanon, which resulted in 492 deaths. The conflict has generated safe-haven demand for gold, as investors look to hedge against potential wider regional instability. IG Markets Economist Yip Jun Rong noted that ongoing tensions in the region are likely to sustain the upward momentum in gold prices.
At the same time, comments from Federal Reserve officials like Chicago Fed President Austin Goolsbee, who anticipates further rate cuts in the next 12 months, have also contributed to the price hike. The Federal Reserve’s recent decision to cut interest rates by 0.5 percent has further fueled expectations of a softer monetary policy approach, supporting the gold market.
In other precious metals, silver increased by 1.3 percent to USD31.07 per ounce, platinum rose 1.4 percent to USD969.35 per ounce, and palladium gained 1.1 percent, reaching USD1,053.09 per ounce.
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