Gold tops $3,900 an ounce, sets new record as investors flee uncertainty

Gold prices surged to record highs above $3,900 per ounce on Monday on expectations of further U.S. rate cuts, and as investors fleeing economic and political uncertainty piled into the safe-haven precious metal. Spot gold hit an all-time peak of $3,958.57 an ounce and has climbed 48% so far this year, adding to last year's gain of 27%. "Investors are navigating everything from shifting Fed policy to global political developments and gold is playing its traditional role as a store of value," said Joseph Cavatoni, senior market strategist at the World Gold Council. The Federal Reserve cut interest rates for the first time this year in September, with markets pricing in two more cuts this year. Lower interest rates reduce the opportunity cost of holding assets such as gold, which pays no interest or dividends, while also weakening the dollar. Conflict in the Middle East, the Russia-Ukraine war and concerns around the Fed's independence have also driven safe-haven demand for gold. Adding to the uncertainty, France's new Prime Minister Sebastien Lecornu and his government resigned on Monday,Weiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times