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Gold Prices Hit New Highs at $2,629 Amid US Rate Cuts and Middle East Tensions

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Gold prices surged to a historic high of $2,629.2 per ounce due to US interest rate cuts and escalating tensions in the Middle East, while other precious metals faced declines.


Gold Prices Surge to Historic High Amid US Rate Cuts and Middle East Tensions

Gold prices soared to a historic high of $2,629.2 per ounce on Monday, reflecting a significant market reaction to the recent interest rate cuts by the US Federal Reserve and escalating tensions in the Middle East. Traders are capitalizing on the momentum created by the Fed's decision to cut rates by half a percentage point last Wednesday, with expectations of further cuts looming later this year and into 2026.

As of 06:44 GMT, the spot price of gold had increased by 0.18%, or $5, since Friday's close, exceeding last week's peak of $2,622. US gold futures also showed an upward trend, rising 0.2% to $2,651.4. The rise in gold prices is not only attributed to the easing of monetary policy but also to rising fears of a potential escalation in conflicts, particularly between Israel and Lebanon's Hezbollah, which could draw in other regional players like Iran and Yemen.

Other Precious Metals Experience Declines

While gold has seen a significant uptick, other precious metals have not fared as well. Spot silver prices fell by 0.7% to $31.94 per ounce, while platinum and palladium also saw decreases of 0.7% and 1.47%, respectively, trading at $968.17 and $1,052.14. The contrasting performance among precious metals highlights the unique market dynamics at play, as investors flock to gold amidst geopolitical uncertainty and a favorable monetary policy environment.

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Refs: | Aljazeera |

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