Karachi
\nGold surged above the historic threshold of $2,700-per-ounce on Friday, powered by escalating tensions in the Middle East, uncertainties around the U.S. elections and relaxed monetary policy expectations that pushed the metal into unchartered territory.
\nSpot gold gained 0.9% at $2,716.43 per ounce by 10:30 a.m. ET (1430 GMT). Prices hit a record high of $2,719.93 earlier in the session, setting bullion on track for a rise of about 2% this week.
\n\u201cWith the conflict intensifying \u2013 particularly following Hezbollah\u2019s announcement to escalate the war with Israel \u2013 investors are flocking to gold, a traditional safe-haven asset,\u201d said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
\nPledges from Israel and its enemies Hamas and Hezbollah to keep fighting in Gaza and Lebanon dashed hopes that the death of a Palestinian militant leader might hasten an end to escalating war in the Middle East.
\nRising geopolitical tensions prompt investors to seek safe-haven assets like gold, driven by risk aversion and concerns over global market instability.
\n\u201cAdding to the momentum, concerns around the U.S. presidential election and anticipation of looser monetary policies have further fuelled the rally,\u201d Zumpfe added.
\nGold shattered records multiple times this year as expectations of more rate cuts by central banks and geopolitical uncertainties boosted prices by more than 30%, or over $650, so far this year, its best annual growth since 1979, as per LSEG data.
\nLower rates enhance the appeal of bullion, which yields no interest on its own.
\nSources told Reuters the ECB was likely to cut again in December unless economic data suggests otherwise. Traders are also pricing in a 91% chance of a Federal Reserve rate cut in November, according to the CME Fedwatch tool.
\nMax Layton, global head of commodities research at Citi, sees gold prices reaching $3,000\/oz over the next 6-12 months, as a store of wealth in a time of high U.S. and European economic uncertainty, driving up ETF and investment demand.
\nSilver is expected to perform strongly to 35\/oz over the next three months, Layton added.
\nSpot silver rose 2.5% to $32.49. Platinum added 0.9% to $1,000.75 and palladium gained 2.2% to $1,065.00.<\/p>\n","protected":false},"excerpt":{"rendered":"
Karachi Gold surged above the historic threshold of $2,700-per-ounce on Friday, powered by escalating tensions in the Middle East, uncertainties around the U.S. elections and relaxed monetary policy expectations that pushed the metal into unchartered territory. Spot gold gained 0.9% at $2,716.43 per ounce by 10:30 a.m. ET (1430 GMT). Prices hit a record high […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-438341","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n