GOLD PRICES HIT ALL-TIME HIGHS AS SAFE-HAVEN DEMAND RISES

Published on Sep 20, 2024 13:48

Gold prices soared to record levels in Asia electronic trades on Friday, driven by a sharp decline in the US dollar and heightened safe-haven demand amid rising geopolitical risks. MCX October bullion futures approached Rs 74,000 per 10 grams, nearing the all-time high of over Rs 75,000 reached in July. The Federal Reserve`s unexpected 50 basis point interest rate cut, its first since early 2020, is expected to enhance gold`s appeal by reducing the opportunity cost of holding non-yielding assets. Meanwhile, the People`s Bank of China, Bank of England, and Bank of Japan maintained their respective rates, indicating a cautious stance. Additionally, escalating tensions in the Middle East, particularly Israel`s actions near the Lebanon border, have further bolstered gold`s status as a safe haven.