Gold prices rose to trade near an all-time high during trading on Thursday, October 16, benefiting from investor appetite for the precious metal amid ongoing geopolitical and economic uncertainty, growing expectations of a US interest rate cut and a declining dollar.
In trading, gold futures rose 0.9% to $4,237.5 per ounce, while spot gold prices rose 0.2% to $4,216.0874 per ounce.
Gold is considered a safe haven asset during times of uncertainty and typically thrives in a low interest rate environment. It has risen 61% since the beginning of this year.
The dollar index fell 0.1%, hovering near a one-week low, making gold priced in the greenback cheaper for holders of other currencies.
US officials on Wednesday criticized China's expanded controls on rare earth mineral exports, describing them as a threat to global supply chains and vowing to respond.
The US and China exchanged port duties on each other's ships this week, escalating tensions in the ongoing trade dispute.
Gold's rise is attributed to a combination of factors, including geopolitical risks, expectations of a US interest rate cut, and increased central bank purchases of the precious metal.
Investors are likely to implement a 25 basis point interest rate cut at the Federal Reserve's meeting this month, followed by another cut in December.
