Gold sets a historic record by surpassing $4500 per ounce

Gold prices hit a new historic high on Wednesday, surpassing $4,500 per ounce for the first time ever, supported by growing demand for safe havens and market expectations of further monetary easing by the U.S. Federal Reserve.

However, it is now trading below the 4500 levels at $4480 per ounce.

Factors supporting higher gold prices

The strong rally in gold prices came amid continued economic and geopolitical uncertainty, along with expectations of interest rate cuts in the coming periods.

Although US economic growth remained strong in the third quarter, growing at a faster pace than in the previous quarter, labor market indicators showed a gradual slowdown in the pace of job creation.

U.S. interest rate cut expectations

Markets still expect two interest rate cuts in 2026, amid low inflation and low labor demand, although policymakers at the Federal Reserve remain divided on the timing and magnitude of such easing.  

Geopolitical tensions boost safe-haven demand

Geopolitical tensions over Venezuela, after the United States imposed a blockade on oil tankers, have contributed to rising concerns in global commodity markets, boosting demand for gold as a safe haven in times of crisis.

Gold's best annual performance in decades

The price of gold has risen nearly 70% since the beginning of the year, heading for its strongest annual gain since 1979, supported by continued buying by global central banks and strong inflows into gold-backed mutual funds.

Gold tops investors favorite assets

The price of gold on the GOLD Spot market jumped past the $4500 per ounce level and reached $4525 per ounce, confirming its position as one of the most attractive assets for investors, amid rising economic risks and increasing bets on interest rate cuts in the coming period.