Gold rises and approaches the possibility of recording a new historical peak.

Gold prices recorded strong increases for the second consecutive session on Wednesday, amid ongoing geopolitical tensions in various regions of the world, alongside rising expectations of US interest rate cuts.

In this context, gold benefited from its role as a safe haven during times of volatility and geopolitical unrest, particularly after South Korea formed a multilateral team with the United States and Japan to monitor violations by their northern neighbor of Security Council resolutions against it, aiding in the complete implementation of United Nations sanctions on North Korea.

This move came after North Korea destroyed parts of the roads located on the border between the two Koreas on Tuesday, prompting the South Korean military to respond to these explosions, raising market concerns about the escalation of conflict on the Korean Peninsula.

In the Middle East, tensions continue to escalate day by day; as the Israeli entity launched an attack on southern Beirut in the early hours of today. Although the White House expressed its objections to hitting Beirut, preferring a diplomatic solution, the entity continues its assaults on the country, escalating the scope of conflict in the Middle East.

On another note, gold prices found strong support from recent comments by Federal Reserve member Mary Daly, who stated that the central bank might cut interest rates once or twice this year if economic data aligns with expectations, pointing to the gap between the current interest rate and the neutral rate.

These remarks have sparked market expectations that the US Federal Reserve may continue to reduce rates in its remaining meetings this year, which could negatively impact the dollar and positively affect gold as one of the commodities priced in greenbacks.

Current Gold Prices

Turning to today’s trading, we find that spot gold prices have risen by about 0.51% or $13.36, reaching $2,676.23 per ounce, while gold futures prices jumped by around 0.53% to record $2,693.05 per ounce.