Gold remained in record-breaking territory on Monday morning, holding above the $2,500 per ounce mark, which it reached for the first time late last week.
The yellow metal was trading at $2,506 in the morning after peaking at a new all-time high of $2,509 on Friday.
This surge came as expectations grew for a potential base rate cut by the US Federal Reserve in the coming months, with the dollar falling 0.17% against the pound to 0.7712p.
Weak US housing market data late last week fueled speculation of a September rate cut, which is now widely anticipated.
Hargreaves Lansdown analyst Susannah Streeter highlighted that rising global tensions, including in Eastern Europe and the Middle East, also drove up gold demand.
“While a weaker dollar boosts demand for gold, the ongoing conflicts are also increasing interest in this safe-haven asset,” she noted.
“Ukraine’s continued incursions into Russia and the critical stage of ceasefire negotiations in the Middle East are contributing to the heightened demand.”
