BENGALURU- Gold surged above the historic threshold of $2,700-per-ounce on Friday, powered by escalating tensions in the Middle East, uncertainties around the US elections and relaxed monetary policy expectations that pushed the metal into uncharted territory.
Spot gold was up 1 percent at $2,720.05 per ounce and has risen 2.4 percent so far this week.
US gold futures settled 0.8 percent higher to $2,730.
“With the conflict intensifying — particularly following Hezbollah’s announcement to escalate the war with Israel — investors are flocking to gold, a traditional safe-haven asset,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
Pledges from Israel and its enemies Hamas and Hezbollah to keep fighting in Gaza and Lebanon dashed hopes that the death of a Palestinian militant leader might hasten an end to escalating war in the Middle East.
Rising geopolitical tensions prompt investors to seek safe-haven assets like gold, driven by risk aversion and concerns over global market instability.
“Adding to the momentum, concerns around the US presidential election and anticipation of looser monetary policies have further fueled the rally,” Zumpfe added.
