Gold Surges to Record High Amidst Geopolitical Tensions and Fed Minutes
Gold surged to a record high, surpassing its previous peak, driven by heightened geopolitical tensions and expectations of continued central bank buying.
As concerns mount over President Trump's potential withdrawal of support for Ukraine, investors are flocking to haven assets like gold. The precious metal has consistently broken records this year, fueled by Trump's disruptive policies and geopolitical uncertainties.
Goldman Sachs has raised its year-end target for gold to $3,100 an ounce, citing stronger-than-anticipated central bank purchases. Meanwhile, the latest Fed minutes reiterate the cautious stance on interest rates, potentially buoying gold prices further as lower borrowing costs benefit bullion.
Spot gold traded at $2,953.18 an ounce, up 0.7%. Silver, palladium, and platinum also advanced. The Bloomberg Dollar Spot Index declined 0.7%, indicating a weakening dollar and supporting gold's appeal as a safe haven asset.