Another record for gold was set on Friday, with no sign of second thoughts about the benefits of the Fed’s significant rate cut among its supporters, unlike in equities, where some hesitation was observed.
In just two weeks, gold futures have gained an impressive $US120, with more than half of that increase occurring on Thursday and Friday alone.
The most active Comex gold contract for December closed at $US2,647.10 on Friday, achieving a solid daily gain of $US32.50.
December gold hit a high of $US2,651 per ounce, while the Australian dollar price was $US3,852 per ounce, according to the World Gold Council.
"Current trends are very positive for gold, and if these favourable market conditions continue, prices could reach between $2,600 and $2,800 over the next 12 months," said Kyle Rodda, a financial market analyst at Capital.com.
Lower US interest rates and geopolitical uncertainty have increased the appeal of bullion.
In the Middle East, Israeli warplanes late on Thursday carried out their most intense strikes on southern Lebanon in nearly a year, heightening the conflict between Israel and the Lebanese armed group Hezbollah.
"Gold prices are expected to be well-supported in the coming months due to a weaker US dollar and lower bond yields, as well as the backdrop of elevated geopolitical tensions," BMI said in a note.
Elsewhere, China halted gold imports from Switzerland in August for the first time since January 2021, according to customs data from the world’s biggest bullion consumer, refiner, and transit hub, released on Thursday.
Comex silver futures rose 1.4% to $US31.50 per ounce, while Comex copper ended up 2.65% at $US4.33 per pound.
SGX iron ore futures ended the week on Friday at $US91.65 after dipping to around $US88 per tonne on Thursday. Friday’s close was just under the $US92.80 per tonne finish from the previous Friday.
