FX.co ★ Gold Holds Near $4,000 After Record High

Spot gold lingered just below the $4,000 threshold on Friday as investors paused to consolidate after the precious metal surged to an unprecedented $4,059 on Wednesday. This year, gold has appreciated approximately 52% and was poised for a 2.2% increase for the week, marking its eighth consecutive weekly rise. This momentum is largely attributed to ongoing geopolitical tensions, worldwide economic volatility, and heightened anticipation of further interest rate reductions by the US Federal Reserve. Although Israel's government approved a ceasefire with Hamas on Friday, aiming to cease hostilities in Gaza within 24 hours, market participants remain attentive to broader challenges, such as decelerating global growth, persistent inflation, and a continued shift away from US assets and the dollar. Concurrently, the US government faces its third week of shutdown, and France is grappling with political instability following Prime Minister Lecornu's resignation. In terms of monetary policy, the Federal Reserve is broadly anticipated to enact 25 basis point rate cuts at each of its remaining meetings this year.