Gold Price News: Gold Hits New All-Time High As Bullish Themes Combine

Gold prices pushed further to a fresh all-time high on Tuesday, taking support from bets on upcoming interest rates, safe-haven demand and a weaker US dollar.

Prices climbed as high as $2,532 an ounce intraday Tuesday, compared with $2,504 an ounce in late trades on Monday.

The fresh highs came as the markets continued to view looser monetary policy from the US Fed soon, with up to 100 basis points of interest rate cuts expected before the end of the year.

A degree of support for gold as a safe-haven continues as tensions in the Middle East continued to simmer following last weekend’s Israeli air strike in southern Lebanon which killed 10 people. Israel and militant group Hezbollah have exchanged fire across the border almost daily since the October 7 Hamas attack against Israel. For gold, what matters is the risk of the hostilities spiralling into a wider conflict which could disrupt energy and trade flows.

On the technical charts, gold’s push higher means prices have moved above recent trend line resistance at around $2,475 to $2,480 an ounce, based on the recent peaks seen in mid-July and early August.

Currency factors were also at work, as the US dollar has fallen sharply against other major currencies in August, falling to an eight-month low against the euro on Tuesday. A weaker dollar is supportive for dollar-denominated gold prices as it makes the yellow metal cheaper for buyers in other currencies, boosting demand.

Looking ahead, Wednesday will see the release of the US Fed’s FOMC meeting minutes, while Thursday will see manufacturing figures for India and the Euro Area countries, as well as US weekly initial jobless claims figures.