Gold prices surged to record highs on Friday, defying strong US economic data as geopolitical tensions and central bank buying fueled investor demand for the safe-haven asset.
Spot gold (XAU/USD) was trading at $2,385.90 per ounce by 06:40 GMT, after earlier hitting a record high of $2,395. This comes despite recent hot inflation figures and a robust US jobs report raising doubts about the possibility of interest rate cuts in 2024.
Berto Tordecilla
Central bank purchases, particularly amid ongoing geopolitical turmoil, are seen as a key driver of the gold price surge.
While higher interest rates typically weaken gold’s appeal, the current market sentiment seems to be prioritising its safe-haven qualities. With gold poised for a fourth straight weekly gain and already up over 15% for the year, some predict further price increases in the coming months.
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