Why are gold prices hitting record highs?
The price of gold climbed to an all-time high on Friday as uncertainty about conflict in the Middle East and the U.S. presidential election sent investors in search of a safe haven.
The latest jump is hardly a blip. Gold has soared about 32% since the outset of 2024, outpacing the 23% growth in the S&P 500 and a 28% surge in the tech-heavy Nasdaq over that same period.
The monthslong stretch of strong performance owes in large part to an expectation of lower interest rates at the Federal Reserve, which typically coincide with an increase in gold prices, some analysts told ABC News.
They also pointed to purchases of gold reserves among central banks, as well as persistent demand from investors aiming to diversify their portfolio and hedge against global unrest.
Some analysts cautioned that gold prices often oscillate on a weekly or monthly basis, making it difficult for investors to time the market.
