XAU/USD: Gold Prices Blast Off to New Record Above $2,235 on Safe-Haven Buying

Central banks stack up and investors FOMO in. The gold rush is so back.

Key Points:

• Gold shines bright this year.
• Prices peak at new record high.
• US dollar makes its move, too.
• Gold prices XAUUSD skyrocketed into uncharted territory on Friday as haven-seeking investors rushed to buy up the metal. Gold gained more than $40, or over 2%, in early Friday deals to climb above the unseen price tag of $2,235 per troy ounce. Previously, gold held a record of $2,222 before it clashed with the US dollar and dived into a brief downturn.
• It isn’t so much about bargain hunting. Gold prices were already relatively high with a 6.5% gain on the year before today’s leap. The impressive performance by gold comes as traders and investors seek a safe place to shove their capital amid growing uncertainty. Central banks are also piling up the yellow metal at a rapid pace.
• A big factor that plays a role in gold’s upside is the Federal Reserve’s anticipated rate-cut campaign. The central bank is expected to slash borrowing costs three times, reducing the benchmark interest rate by a total of 75 basis points this year. More impressive, however, is that gold pushed higher despite an all-out US dollar attack across forex deals.