Gold soared to new record high with prices above $2,400 earlier in the week

Gold is anticipating upcoming rate cuts to make precious metals ownership more attractive.

• MGC futures gold prices rose to a new record high early Monday morning during the Asian session. Fueling the rise is investor confidence that the Federal Reserve will cut interest rates for the first time after months of rising expectations. Silver was also enjoying a tailwind, with the metal hitting a high last seen in 2013, topping $32, but still some distance from its 2011 record of $49.78.
• Gold rose to a record high of $2,445 an ounce this morning, on track to complete its second straight day of gains. More importantly, the safe-haven commodity broke its previous all-time high of $2,430, reached on April 12. Gold has been one of the biggest winners this year, with their favorite asset up around 20% since the start of January.
• Lower inflation rates are shaking up the investment landscape and pushing gold higher. Why is this? Gold is a non-yielding asset, meaning that it does not provide a fixed income like the US dollar: when you have a dollar deposit, you receive an income that is tied to a benchmark interest rate. When this rate falls, investors may decide to give up dollars and make more profitable ones.