Gold prices reached record highs on Wednesday due to a weaker dollar and an escalated Middle East conflict. Spot gold held steady at $2,658.07 per ounce, while gold futures edged 0.2% higher to $2,682.60.
The dollar was down 0.2%, making greenback-priced bullion less expensive for other currency holders. This data raised hopes that the U.S. Federal Reserve could cut another outsized rate at its November policy meeting.
Zero-yield bullion is a preferred investment in low-interest-rate environments and during geopolitical turmoil. Traders will now turn to the Fed Governor’s speech due later in the day.
Inflows to gold exchange-traded funds, particularly from Western investors, are set to rise in the coming months, adding more positive stimulus for record-high bullion prices.
