The gold price passed a new milestone on Sept. 20, crossing the $2,600 an ounce barrier.
At press time, bullion’s spot price was trading at $2,634 an ounce.
The new record comes a little more than a month after gold broke the once-inconceivable $2,500 an ounce barrier. All in all, the price of gold has risen more than 25% this year.
Most analysts linked bullion’s rise to the Federal Reserve’s decision to lower interest rates, which traditionally has been bullish for the gold price.
“Clearly, there’s still some buying activity associated with the Fed’s decision to begin their easing cycle with a big cut,” Daniel Ghali, commodity strategist at TD Securities, told Reuters.
Yet one of the unusual things about this run is that gold has been rising all year even with higher interest rates.
“The source of this buying activity remains off our radar,” Ghali said.
But Fawad Razaqzada, market analyst at City Index and Forex.com, wrote that “geopolitical risks, such as ongoing conflicts in Gaza, Ukraine, and elsewhere, will ensure to sustain gold’s safe-haven demand,” Reuters reported.
Some experts like Chris Gaffney, the president of world markets at EverBank, have predicted that gold will eventually hit $3,000 an ounce—though probably not this year.
Photo: Getty Images
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