Gold soars above $2,750 ahead of BRICS summit, hits new all-time high

• Gold hits new all-time high.
• Prices soared to $2,755 an ounce.
• A mosaic of factors underlying a strong pump.

Gold futures rose 0.8% to a fresh record high of $2,755 as BRICS nations prepare for de-dollarization talks. Leaders attending the summit, which begins Tuesday, will include China’s Xi Jinping and India’s Narendra Modi, as well as several emerging economies. Russia’s Putin has been pushing for a new global financial payments system to ease America’s dominance over the world’s foreign exchange reserves, analysts at SP Angel said in a note. The move follows sanctions imposed on dollar and euro reserves following Russia’s invasion of Ukraine, SP Angel said. About 58% of central bank foreign exchange reserves are currently held in dollar-denominated assets, although central banks have begun to build up their non-dollar reserves, with gold the main beneficiary, the analysts wrote.

An uncertain election outlook, central bank easing and tensions in the Middle East are fuelling a strong rally in bullion prices.

• Gold futures MCG prices soared to a new record high as traders and investors sought safety amid a flurry of factors. The shiny metal surged to an all-time high of $2,755 an ounce, comfortably clearing the psychological $2,700 barrier and heading for a fourth straight day of gains. But what's really driving all this buying momentum? A lot of things.

• First, central banks are easing their monetary policy, making money more available by cutting interest rates. The European Central Bank on Thursday made its third interest rate cut in a year, and the Federal Reserve plans to make a second cut in borrowing costs in November. Lower rates reduce the opportunity cost of holding gold, which pays no dividends or interest.

• Also uncertain is the outlook for the US presidential election. Both candidates Donald Trump and Kamala Harris disagree on capital market regulation, taxes, government spending and broader fiscal policy. And last but not least, there are tremors in the Middle East.