The price of gold bullion has broken above $2,600 U.S. an ounce and hit a fresh all-time high after the U.S. Federal Reserve lowered interest rates.
Gold’s price closed at $2,646.20 U.S. per ounce on Sept. 20, a record level, as the rally that began a year ago continues to gather steam.
The price of gold is now up 27% in 2024, its biggest annual increase since 2010.
The epic run in gold’s price comes as central banks around the world ramp-up their purchases of the precious metal amid rising geopolitical uncertainty, particularly in the Middle East.
Gold has long been viewed as a safe haven asset and purchases of the yellow metal tend to rise in periods of uncertainty.
There has also been rising consumer demand for gold jewellery and bars in China, which is helping to fuel the price increase.
Lower interest rates also favour gold as the metal pays no interest.
Some analysts are saying that they expect the price gains in gold to continue in coming months as interest rates fall further and with no end in sight to the Middle East conflict.
Continued weakness in the U.S. dollar, which makes gold cheaper for holders of other currencies, is yet another tailwind for the metal.
