Gold prices hit a record high on Wednesday, driven by weak U.S. Treasury yields, anticipated interest rate cuts from major central banks, and the added safe-haven demand sparked by ongoing geopolitical tensions.

Peter A. Grant, Vice President and Senior Metals Strategist at Zaner Metals, noted that the likelihood of the Federal Reserve (Fed) cutting interest rates by 25 basis points in November has strengthened. Additionally, soft inflation data from Europe and the U.K. has increased expectations for more aggressive easing from the European Central Bank and the Bank of England, causing a broad decline in yields, which in turn boosted gold prices.

Gold Prices Reach Record High Amid Weak Yields and Central Bank Rate Cut Expectations

Oct 17 2024