Gold prices reached an all-time high on Friday, driven by uncertainty surrounding the Middle East conflict and the upcoming U.S. presidential election.
Since the start of 2024, gold has surged 32%, outpacing gains in both the S&P 500 and Nasdaq.
Analysts attribute the rise to expectations of lower Federal Reserve interest rates, which typically boost gold prices, and large purchases of gold by central banks, particularly from China, ABC News reported.
The People’s Bank of China has sought to reduce reliance on the U.S. dollar, purchasing gold for 18 consecutive months until May.
Despite a slowdown in central bank gold purchases this year, the price continues to climb, fueled by investor demand for a safe-haven asset amid geopolitical instability and economic uncertainty.
The Federal Reserve’s recent rate cuts, with another likely soon, have further increased confidence in gold’s value. Experts warn, however, that gold prices often fluctuate, making market timing difficult.
As the U.S. election approaches, political uncertainty is also pushing investors toward gold as a stable investment option in uncertain times.
