Gold Price News: Gold Hits All-Time Highs on Lower Interest Rates, Safe-Haven Demand

Gold prices put in a fourth consecutive day of gains on Friday, rising to a fresh all-time high as the metal took continued support from falling interest rates and safe haven demand.

Prices rose as high as $2,725 an ounce on Friday – a new all-time high for gold – and up from around $2,693 an ounce in late trades on Thursday.

ECB rate cut focuses minds on looser monetary policy

The ECB’s 25 basis-point interest rate cut on Thursday provided another reminder that major economy central banks are now in a rate-cutting cycle, now that inflation is coming down closer to target ranges.

Uncertainty over the outcome of the US election on November 5 remains a wildcard factor for gold, while attention remains focused on the US Fed, with the market pricing in a roughly 90% chance of a further 25 basis point cut at its upcoming meeting two days later on November 7.

Conflict drives safe-haven demand

Geopolitical factors continue to drive interest in safe havens like gold. Some observers have described Israel’s killing of Hamas leader Yahya Sinwar last week as a victory for Israeli leader Benjamin Netanyahu, and a move that can potentially pave the way for a ceasefire deal and eventual peace. However, this somewhat rosy picture fails to account for Lebanese militant group Hezbollah’s reaction to the killing, with the group on Friday threatening a ‘new and escalating phase’ of its war with Israel.

Economic data releases to watch

Monday and Tuesday will see further speeches by US Fed officials, while ECB President Christine Lagarde will speak on Tuesday — potentially of interest as the markets weigh the outlook for further interest rate cuts in the coming months.