Gold prices hit a record high of $2,600 U.S. on Friday in a searing rally, as the prospect of more U.S. interest rate cuts burnished its appeal amid global uncertainties.
Spot gold progressed 0.7% at $2,604.50 per ounce after hitting a record high of $2,609.62. U.S. gold futures rose 0.6% to $2,630.00, while silver gained 1.1% to $31.12.
The U.S. Federal Reserve began its easing cycle with an outsized half-percentage-point cut on Wednesday. Policymakers also projected another half-point reduction by the year-end, a full point next year and an additional half-point trim in 2026.
Lower rates reduce the opportunity cost of holding gold, since it pays no interest.
A weaker dollar makes greenback-priced bullion more attractive to other currency holders.
Bullion has risen over 26% so far in 2024, with long-drawn conflicts in the Middle East and Europe adding to uncertainties for global investors.