9/23/2024–|Last update: 9/23/202410:21 AM (Makkah Time)
Gold prices recorded a new historic high in morning trading on Monday, above $2,629 per ounce, due to the US interest rate cut and Middle East tensions, before the yellow metal retreated slightly.
The precious metal received support from traders’ desire to exploit the momentum resulting from the Federal Reserve’s decision to cut interest rates and signs that more cuts are looming on the horizon.
By 06:44 GMT, spot gold prices were up 0.18%, or $5, from Friday’s close, at $2,629.2 an ounce, breaking last week’s high of $2,622.
US gold futures rose 0.2% to 2651.4 at the time of writing.
Gold prices rebounded after the US Federal Reserve began easing monetary policy by cutting interest rates by half a percentage point last Wednesday.
The bank expects another half-percentage-point cut by the end of the year, a full point next year and an additional half-point in 2026.
The yellow metal also benefited from fears that tensions between Israel and Lebanon’s Hezbollah could expand into a regional war that Iran and Yemen would join more broadly in the coming days.
As for other precious metals:
- Spot silver fell 0.7% to $31.94 an ounce.
- Platinum fell 0.7% to $968.17.
- Palladium fell 1.47% to $1,052.14.
