Gold

Spot

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<p class="has-drop-cap">Gold prices surged to an unprecedented high on Friday, driven by a combination of economic indicators and global tensions. Spot gold reached $2,487.66 per ounce, marking a significant milestone in the precious metal’s recent rally.</p>
<p>The yellow metal increased 1.3% in a single day, contributing to a weekly gain of 2.5%. U.S. gold futures mirrored this upward trend, rising 1.4% to $2,526.40. This remarkable performance underscores gold’s enduring appeal as a safe-haven asset in times of economic uncertainty.</p>
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<h3 id="three-factors-fueling-the-gold-rush">Three Factors Fueling the Gold Rush</h3>
<p>Several key factors are propelling gold’s ascent to new heights. Firstly, the <a href="https://www.reuters.com/markets/currencies/dollar-tenses-data-verdict-rate-cut-risks-2024-08-13/" target="_blank" aria-label="U.S. dollar's continued weakness (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">U.S. dollar’s continued weakness</a> has played a crucial role. With the dollar index falling 0.3% and heading for its fourth consecutive week of losses, gold has become increasingly attractive to overseas buyers.</p>
<p>Growing expectations of U.S. interest rate cuts have also bolstered gold’s allure. Recent data from the Producer Price Index (PPI) and Consumer Price Index (CPI) suggest inflation is subsiding, leading traders to anticipate a potential 25-basis point rate cut in September. <br><br>Lower interest rates typically enhance gold’s appeal by reducing the <a href="https://tokenist.com/investing/when-to-buy-stocks/" rel="noopener noreferrer nofollow" class="deco-link">opportunity cost</a> of holding non-yielding bullion.</p>
<p>Finally, escalating geopolitical tensions, particularly in the Middle East, have further fueled demand for gold. The Israeli army’s <a href="https://www.aljazeera.com/news/liveblog/2024/8/16/israel-war-on-gaza-live-children-killed-in-israeli-attack-on-jabalia-camp" target="_blank" aria-label="order for fresh evacuations in southern and central Gaza (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">order for fresh evacuations in southern and central Gaza</a>, areas previously designated as humanitarian safe zones, has heightened global uncertainties. As a traditional hedge against geopolitical risks, gold has seen increased interest from investors seeking safe-haven assets amid these tensions.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
<h3 id="br"><br></h3>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/three-factors-why-gold-prices-are-soaring-to-record-highs/">Three Factors Why Gold Prices are Soaring to Record Highs</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Three Factors Why Gold Prices are Soaring to Record Highs

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