Gold prices soared above $2,700 per ounce on Friday, setting a new record high, fueled by heightened global demand for safe-haven assets and expectations of further interest rate cuts from major central banks.
Gold surges past $2,700 amid geopolitcal tensions
The European Central Bank (ECB) lowered its deposit rate to 3.25%, marking the third rate cut this year, while affirming that the disinflationary process is "well on track."
What drives the prices today
The rise in gold prices was further supported by escalating tensions in the Middle East, particularly following the Israeli military's confirmation of the death of Yahya Sinwar, a prominent Hamas leader, in combat, which raised fears of regional escalation. Additionally, bullion attracted investors as they moved away from riskier assets amid disappointing fiscal measures in China related to the ongoing property crisis and uncertainties surrounding the U.S. presidential election.
However, strong economic data from the U.S. limited gold's upward momentum, reinforcing the case for a less dovish stance from the Federal Reserve.
