Khaberni - Gold climbed to a record level on Thursday, benefiting from investors’ demand for the precious metal amid ongoing geopolitical and economic uncertainty, along with increasing expectations for a cut in US interest rates and a weakening dollar.
By 00:33 Greenwich Mean Time, spot gold had risen 0.4% to $4224.79 an ounce after reaching a record high of $4225.69.
U.S. gold futures for December delivery increased by 0.9% to $4239.70.
Gold is considered a safe-haven asset during periods of uncertainty and typically thrives in a low-interest rate environment, having increased 61% since the start of the current year.
The dollar index fell 0.1%, hovering near its lowest level for the week, making gold priced in the U.S. currency cheaper for holders of other currencies.
On Wednesday, U.S. officials criticized China’s expanded controls on the export of rare earth metals, describing them as a threat to global supply chains, and vowed to respond.
The United States and China imposed port duties on each other’s ships this week, escalating tensions in the ongoing trade dispute.
The rise in gold prices can be attributed to a mix of factors including geopolitical risks, expectations of a cut in U.S. interest rates, and increased central bank purchases of the precious metal.
Investors anticipate a 25 basis point cut in the interest rate at this month's Federal Reserve meeting, followed by another cut in December.
For other precious metals, spot silver advanced 0.2% to $53.16 an ounce after reaching a record high of $53.60 on Tuesday.
Platinum increased by 0.7% to $1665.70 while palladium fell 0.3% to $1540.36.
