Gold soared above $2,600 for the first time on Friday, driven by expectations of further U.S. interest rate cuts and heightened tensions in the Middle East. Spot gold jumped 1.3%, reaching $2,620.63 per ounce, while U.S. gold futures climbed 1.2% to settle at $2,646.20.
The Federal Reserve’s recent half-point rate cut boosted demand for gold, which has surged 27% in 2024, marking its biggest annual gain since 2010. Investors are flocking to gold as a safe-haven asset amid ongoing conflicts in Gaza, Ukraine, and beyond.
However, analysts warn that the rally might face a correction, as retail demand in major markets like China and India has weakened. While geopolitical risks and a weak U.S. dollar continue to support gold, some experts caution that further upward spikes may be limited.