New York gold futures‌ have reached a new milestone, closing above $2,600 for the⁤ first time on Friday, September 20. This significant jump was driven by⁣ a cut​ in US ‍interest ‌rates and escalating tensions in ⁣the Middle East.

The⁢ US COMEX ⁢gold ‍contract, set to be delivered in December, saw a substantial increase of $31.60 or ⁢1.21%, closing at $2,646.20/oz.

The recent interest rate cut by the Federal⁤ Reserve has​ added to the allure of‌ gold, a non-interest bearing asset. As a result, gold prices have surged 27% this year, marking the largest annual gain​ since 2010.

Investors have been flocking⁤ to gold as a safe-haven asset amid ⁣ongoing conflicts in ⁢the Middle East and other regions, fueling ⁣the price increase.

While some analysts ⁤predict a potential correction in gold prices, others believe that ⁤the upward trend may​ continue. ​The depreciation⁤ of the US⁢ dollar is expected to make gold⁢ more affordable ‍for ‍holders of other currencies, potentially ⁤driving​ up demand.

Fawad Razakzada, an analyst at Forex.com, noted that⁢ “geopolitical risks, ⁣such as ongoing conflicts in Gaza, Ukraine, and elsewhere, will support the demand​ for gold as ‍a safe-haven asset class.”

The recent air ⁢attack by the ⁢Israeli army on Beirut, Lebanon, which resulted in at least 14 ‍fatalities, ‌including Hezbollah’s top ‌military commander, ‍Ibrahim Akil, has ​further contributed to the escalating tensions in the region.