Gold prices soared past $2,600 per ounce on Friday, marking a historic high as bets on further U.S. interest rate cuts and rising geopolitical tensions fueled the rally. Spot gold jumped 1.3% to $2,620.63 per ounce by 1:43 p.m. ET (1743 GMT), while U.S. gold futures climbed 1.2% to settle at $2,646.20.
The surge comes as the Federal Reserve kicked off an aggressive easing cycle with a half-point interest rate reduction earlier this week, boosting the appeal of the non-yielding metal. Gold prices have risen 27% in 2024, the strongest annual performance since 2010, driven by investor demand for safe-haven assets amid ongoing conflicts in the Middle East and broader global uncertainties.
Meanwhile, Zimbabwe’s Mines Minister Winston Chitando urged the country to capitalize on rising global gold prices. He emphasized the importance of increasing both production volume and unit prices to maximize the benefits from the global demand surge.
Elsewhere, spot silver rose 1.2% to $31.16, while platinum fell 1.1% to $978.50 and palladium slipped 0.5% to $1,074.84.
