FX.co ★ Gold Hits Record High

Gold prices soared to a record-breaking $4,380 per ounce on Monday, propelled by the anticipation of further interest rate reductions by the US Federal Reserve and rising geopolitical tensions. Investors are currently factoring in two more potential rate cuts by the Federal Reserve next year, following less robust US inflation figures reported last week. In terms of geopolitical developments, the US is reportedly keeping a close watch on another vessel near Venezuela after already intercepting two tankers this month, and Ukraine, for the first time, targeted a Russian tanker in the Mediterranean Sea. Gold has seen a substantial increase of over 60% this year, positioning it for its most significant annual rise since 1979. This rally is further bolstered by strong purchases from central banks and continuous inflows into exchange-traded funds (ETFs).