Gold hits record high as Middle East tensions and policy easing boost

Gold surged to around $2,730 per ounce on Monday, hitting new record highs as demand for safe-haven assets grew.

Gold hits record high as Middle East tensions and policy easing boost

Investors are closely monitoring escalating tensions in the Middle East following Hezbollah’s announcement of intensifying its conflict with Israel and reports of Israeli strikes on Beirut’s southern suburbs and other targets. Uncertainty surrounding the upcoming US presidential election also drives up gold demand.

Gold supported by global rate cuts, but strong US data tempers Fed dovish expectations

Additionally, expectations of looser monetary policies from major central banks support gold prices, with the PBoC cutting key rates and the ECB making its third rate cut this year. However, strong US economic data has tempered hopes for a more dovish Federal Reserve stance.