Gold Price News: Gold Hits New Highs on Rate Cuts, Conflict Risk

Gold prices pushed higher again on Tuesday, setting a new all-time high as the markets awaited fresh signals following last week’s US interest rate cut, and taking support from safe-haven flows amid increased tensions in the Middle East.

Prices again pushed into new territory, rising as high as $2,664 an ounce on Tuesday, compared with around $2,627 an ounce in late trades on Monday.

Gold prices continued to look buoyant after the US Fed slashed interest rates by 50 basis points last week — the first cut in more than four years — raising the appeal of non-yielding assets. The US dollar also fell back on Tuesday, giving up the previous day’s gains, adding to the bullish picture for gold.

Geopolitics have also come to fore once again, after Israel said it hit 1,600 Hezbollah targets with air strikes in Lebanon on Monday, while the Lebanese paramilitary group fired more than 200 rockets into northern Israel. The latest increase in hostilities is serious and materially raises the risk of a wider conflict – a situation which boosts investment flows into safe havens like gold.

Looking ahead, the markets will be focused on Thursday’s US durable goods orders for August as well as the US GDP growth rate for Q2. Attention will also turn to a speech by US Fed chair Jerome Powell for any clues on the future path for interest rates. The markets appear to expect cuts amounting to a further 50-basis points before year’s end, and more to follow in 2025.