FX.co ★ Gold Near Record High

Gold prices climbed to approximately $4,500 per ounce on Friday, following a brief surge to an unprecedented high of $4,530 earlier in the session. This increase was propelled by a demand for safe-haven assets amid escalating geopolitical tensions and anticipations of interest rate cuts in the US. Investors are closely monitoring ongoing issues, including the US blockade on Venezuelan crude exports, persistent hostilities between Russia and Ukraine, and Washington's recent military action against ISIS in Nigeria. Additionally, market dynamics suggest the Federal Reserve may implement two quarter-point interest rate reductions next year due to cooling inflation rates and a softening labor market, although Fed officials remain divided over future policy directions. Bullion has seen an impressive rise of over 70% this year, which stands as the largest annual gain since 1979. This rally is further supported by strong central bank purchases and continuous inflows into exchange-traded funds (ETFs).