Gold Hits All-Time High Above $4,480 per Ounce Amid Rate Cut Bets and Geopolitical Tensions

Gold prices recorded another surge, reaching an unprecedented record high above $4,480 per ounce during Tuesday’s trading, marking nearly 50 record sessions since the start of the year in one of the strongest historical rallies for the precious metal.

This rise is driven by increasing market bets on US monetary policy easing, with markets currently pricing in two consecutive Federal Reserve rate cuts next year amid indications of slowing inflation and a moderating US labor market.

Later today, markets await the release of the second estimate of third-quarter GDP, which could provide further signals regarding the resilience of the US economy and the possible path of interest rates, adding to the anticipation in metals markets.

On the geopolitical front, gold received additional support from escalating tensions between the United States and Venezuela, after Washington intensified its naval movements in the region, including the seizure of a second oil tanker and the pursuit of a third, boosting demand for safe-haven assets.

Since the beginning of the year, gold prices have risen by more than 70%, putting the metal on track for its strongest annual performance since 1979, supported by robust central bank purchases and steady inflows into gold-backed exchange-traded funds (ETFs).