Gold prices hit new highs amid global uncertainties – London Business News | Londonlovesbusiness.com

Gold has surged for the fifth consecutive day, reaching new record highs, supported by easing monetary policies from major central banks.

Today, the People’s Bank of China (PBoC) cut its key interest rates as part of its stimulus efforts, following the European Central Bank’s (ECB) rate cut.

Ongoing geopolitical tensions, particularly in the Middle East, support gold’s appeal as a safe-haven asset, with no resolution to the conflict in sight.

Additionally, uncertainty around the upcoming U.S. presidential elections, especially regarding former President Donald Trump’s potential return and his controversial economic policies, adds to market volatility. As investors navigate these uncertainties, gold remains a key hedge against those risks.

Despite these supportive conditions, strong economic data from the United States has raised expectations that the Federal Reserve may take a less dovish approach. This potential shift has contributed to a strong dollar and pushed Treasury yields higher, which could weigh on gold.