FX.co ★ Gold Scales New All-Time Peak

Gold prices surged to a new all-time high, exceeding $4,480 per ounce on Tuesday, marking the 50th session this year that has set a record. This surge is largely fueled by anticipation of a more accommodative monetary stance from the U.S. Federal Reserve and escalating geopolitical tensions. Market participants are currently factoring in two anticipated quarter-point rate reductions by the Federal Reserve for the upcoming year, spurred by indicators of slowing inflation and a decreasingly active labor market. Investors are shifting their focus to the upcoming release of the second estimate for third-quarter GDP, expected later today, which may provide further insights into the condition of the U.S. economy and forecast future Federal Reserve policies. The demand for safe-haven assets has been bolstered by increased tensions between the U.S. and Venezuela, especially following Washington's enhanced naval blockade of the area, highlighted by the seizure of a second oil tanker on Saturday and the pursuit of a third. So far in the current year, gold bullion has increased by 70%, on track to achieve its most considerable annual growth since 1979. This rally is further supported by significant central bank purchases and consistent inflows into exchange-traded funds.