Gold Hits Record $2,400 as Middle East Tensions Heighten

Gold prices soared to a new record high, surpassing $2,400 per ounce, amid escalating Middle East tensions and fears of retaliation following an Israeli strike in Syria. The surge in demand for gold, seen as a more reliable hedge against geopolitical risks than government bonds, was further fueled by U.S. inflation concerns, according to Mohamed A. El-Erian. Additionally, gold’s rise has been supported by increased purchases by central banks, including China, and speculation about potential Federal Reserve rate cuts in 2024, despite recent robust U.S. inflation data complicating the economic forecast.