The price of %Gold has risen above $2,400 U.S. an ounce for the first time and hit an all-time high as the rally in bullion gathers steam.
Gold is currently trading at $2,415.40 U.S. per ounce. The precious metal has now reached record highs on 17 separate occasions this year.
The price of gold is up 15% year to date, according to market data.
The rally is gaining momentum on expectations that the U.S. will lower interest rates later this year and as central banks purchase bullion amid escalating geopolitical tensions.
Gold buying has spiked in recent days on media reports that Iran is planning to attack Israel after an Israeli strike in Syria killed an Iranian general.
Investors are also looking past recent data that showed the U.S. economy remains strong and inflation is sticky and still expect at least two interest rate cuts by year’s end.
Gold benefits when interest rates decline as the cost of holding a non-yielding asset such as bullion also decreases.
Some analysts expect the price of gold to encounter resistance at current levels. However, others see the price continuing to rally.
Analysts at %JPMorganChase (NYSE: JPM) have named gold their top pick in commodities and forecast that the price will reach $2,500 U.S. by year’s end.