The price of gold on the spot market hit a record high for the 50th time since the beginning of the year due to expectations of a Fed rate cut and demand for safe-haven assets.
During trading on Tuesday, the spot price of gold rose 0.7% to $4,473 per ounce. The day before, gold rose at a record pace for the month, and since the beginning of the year, it has risen 70% and shown the best annual dynamics since 1979.
Other precious metals are also rising in price: the cost of silver increased by 0.2% to $69.2 per ounce, platinum by 1.3%, and palladium by 1%.
Market participants are monitoring events surrounding Venezuela. According to media reports, last weekend the US Coast Guard attempted to intercept another oil tanker allegedly linked to the country’s shadow fleet.
“Geopolitical tensions are back on the agenda,” said Ahmad Assiri of Pepperstone Group. “These events may not have caused an immediate reaction, but they certainly increase the demand for gold as a hedge against risk.”
In addition, investors believe that the Fed will continue to lower its key rate amid a weakening labor market. Low interest rates are a positive factor for gold prices, as they increase the relative attractiveness of investments in precious metals, which do not generate interest income.
Goldman Sachs analysts predict that in 2026, gold will rise to $4,900 per ounce in the base scenario.
