- The price of gold broke the $2,600 barrier on global stock exchanges for the first time in its history, continuing its upward trend supported by bets on further interest rate cuts in the United States and escalating tensions in the Middle East.
- The precious metal rose by more than 1% to reach $2,622 per ounce at the end of yesterday's session, Friday, after recording during the session $2,625.76, a new historical level that the yellow metal had not seen before, and US gold futures increased by 1.2% to $2,646.20 at settlement.
- Gold prices rose after the US Federal Reserve began easing monetary policy by cutting interest rates by half a percentage point.
- Gold has risen more than $271 TP3T since the start of the year, the biggest annual gain since 2010, as investors seek to hedge against uncertainty caused by conflicts in the Middle East and elsewhere.
- The yellow metal also recorded an increase during the current month by about 5%, and analysts said that the unprecedented upward wave may go through a correction period.
- The unprecedented surge has eroded retail demand in China and India, the two largest consumers.
- Analysts said the continued weakness of the dollar, which makes gold cheaper for holders of other currencies, provided additional support.
