Gold continues to rise driven by geopolitical tensions and expectations of US interest rate cuts

Gold prices rose on Thursday as demand for safe-haven assets increased amid escalating international tensions and economic uncertainty, while investors await important US data that could shape the upcoming monetary policy of the Federal Reserve.

The precious metal recorded a 0.6% increase in spot transactions, reaching $3756.29 per ounce by 08:57 GMT, after touching a historic high of $3790.82 on Tuesday.

US futures contracts for December also rose by 0.5% to $3787.

Analysts attributed this rise to a combination of factors, most notably the ongoing war in Ukraine, tensions in the Middle East, and the trade war, along with a lack of signs of sufficient US financial stability. In this context, Carlo Alberto De Casa from the "Swissquote" group noted that "the geopolitical and economic landscape makes it easy to understand why gold is rising."

Regarding monetary policy, San Francisco Federal Reserve President Mary Daly supported the recent interest rate cut decision, expecting further reductions, while Federal Reserve Chair Jerome Powell's statements were cautious.

Markets expect an additional cut of 25 basis points in October and December, according to the "Fed Watch" tool.

Investors are awaiting the release of the Personal Consumption Expenditures Price Index report on Friday, which is the Federal Reserve's preferred measure of inflation, amid expectations of a 0.3% monthly increase and a 2.7% annual increase.

Weekly unemployment claims data will also be released later, which may provide additional signals about the strength of the labor market.

As for other precious metals, silver rose by 0.2% to $44.76 per ounce, platinum increased by 2% to $1501.69, while palladium recorded the same increase to $1501.69.