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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.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.
Three Factors Fueling the Gold Rush
Several key factors are propelling gold’s ascent to new heights. Firstly, the 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.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.
Lower interest rates typically enhance gold’s appeal by reducing the of holding non-yielding bullion.Finally, escalating geopolitical tensions, particularly in the Middle East, have further fueled demand for gold. The Israeli army’s , 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.More By This Author:Nike And Ulta Beauty Soar On News Of Big-Name Investor Stakes Walmart Reports Better than Expected Q2: $0.67 EPS, $169.3 B in Revenue3 Stocks Ready To Surge With A September Rate Cut
