Gold prices have climbed to a fresh record, driven by growing expectations that the Federal Reserve will begin cutting interest rates and by heightened geopolitical risks that are boosting demand for safe-haven assets.
Spot gold rose sharply in early trading, extending a rally that has gathered momentum in recent weeks as investors reassess the outlook for inflation, economic growth, and monetary policy in the United States. Lower interest rates tend to support gold by reducing the opportunity cost of holding non-yielding assets.
Analysts say renewed tensions in several regions, combined with uncertainty over global economic growth, have reinforced gold’s appeal as a store of value. A softer US dollar has also helped push prices higher, making gold cheaper for buyers using other currencies.
Other precious metals have followed gold’s lead, with silver and copper also posting gains amid expectations of improved industrial demand and looser financial conditions. Some investors are increasing exposure to commodities as a hedge against market volatility and currency fluctuations.
Market watchers caution that while momentum remains strong, prices could see short-term pullbacks if economic data alters expectations around the timing or scale of rate cuts. Still, many analysts believe gold’s longer-term outlook remains supported by central bank buying and ongoing geopolitical risks.
