Gold price surges above $4,200 for new record

Gold scaled another all-time high on Wednesday, surpassing the $4,200-per-ounce mark for the first time, as US rate cut expectations and geopolitical jitters continue to drive up demand for the safe-haven metal.Spot gold advanced as much as 1.6% to $4,217.95 per ounce, surpassing its previous record high from earlier this week. US gold futures also shot up 1.6% to $4,235.80 an ounce in New York.Click on chart for live prices.Gold has been trending up in recent weeks amid expectations that the US Federal Reserve will deliver another interest rate cut this month. Since August, the month leading up to the Fed’s September cut, bullion has risen by more than a quarter.Over recent sessions, the yellow metal has gained further momentum as a souring relationship between the US and China once again alarmed investors, elevating the appeal of safe havens such as gold.“With US-China trade tensions being reignited in the last few days, investors have even more reason to hedge their long equity bets by diversifying into gold,” Fawad Razaqzada, an analyst at City Index and FOREX.com, told Reuters.“With the $5,000 handle now just $800 away, I wouldn’t bet against gold getting there eventually,” Razaqzada said, adding that a short-term correction is likely to shake out weaker hands and attract fresh dip buyers.Meanwhile, the market continues to monitor the ongoing US government shutdown, which has halted official data and may cloud policymakers’ outlook abroad. On Tuesday, Fed Chair Jerome Powell struck a dovish tone, stating that the US labour market remained mired in “low-hiring, low-firing doldrums.”Traders are currently pricing in a 25-basis-point Fed rate cut in October with a 98% probability, followed by another cut in December, which is fully priced in at 100%, according to Reuters.With Wednesday’s gains, gold has now risen 58% this year, driven by a confluence of factors including geopolitical tensions, rate cut bets, central bank buying, de-dollarization and strong ETF inflows.(With files from Reuters)Sponsored: Secure your wealth today — buy gold bullion directly through our trusted partner, Sprott Money.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com