Gold prices surged to a new record on Friday, surpassing $2,609 per ounce, as expectations mounted for further cuts in U.S. interest rates, which have heightened demand for the precious metal. The price of gold peaked at $2,609.74 per ounce, just two days after the Federal Reserve implemented a significant rate cut—the first since 2020—suggesting that additional reductions are likely.
The yellow metal had previously reached its highest point on September 13, driven by speculation surrounding U.S. rate cuts and a declining dollar, and it also experienced gains earlier in August. As a preferred safe-haven asset compared to the U.S. dollar and bond yields, gold benefits from the depreciation of these investments.
On Wednesday, the Federal Reserve commenced its monetary easing cycle with an initial interest rate reduction of half a percentage point.
