Gold rose to a record level today, Thursday, benefiting from investors’ demand for the precious metal amid the continuing state of geopolitical and economic uncertainty, with increasing expectations of a reduction in US interest rates and a decline in the dollar.
By 00:33 GMT, gold in instant transactions rose 0.4% to $4,224.79 per ounce, after hitting a record level of $4,225.69.
US gold futures for December delivery increased 0.9% to $4,239.70, quoted by Reuters.
Gold is considered a safe haven asset during periods of uncertainty, and usually thrives in a low interest rate environment, and has increased 61% since the beginning of this year.
The dollar index fell 0.1%, hovering near its lowest level in a week and making gold priced in the US currency cheaper for holders of other currencies.
Yesterday, Wednesday, US officials criticized the expanded controls imposed by China on the export of rare earth metals, describing them as a threat to global supply chains, and vowed to respond.
The United States and China imposed port fees on each other’s ships this week, escalating tensions in the ongoing trade dispute.
Gold’s rise is due to a combination of factors, including geopolitical risks, expectations of lower US interest rates, and increased central bank purchases of the precious metal.
Investors are likely to implement a 25 basis point interest rate cut at the Federal Reserve meeting this month, followed by another cut in December.
As for other precious metals, silver advanced in spot transactions by 0.2% to $53.16 per ounce after reaching a record level of $53.60 on Tuesday.
Platinum increased 0.7% to $1,665.70, while palladium decreased 0.3% to $1,540.36.
