Gold price hits new high driven by expectations of a U.S. rate cut and geopolitical risks.

Gold prices rose to a record high on Tuesday, marking the 50th time this year that the record has been broken as investors weigh escalating geopolitical tensions and the prospect of further interest rate cuts in the United States. The price of gold broke through $4,465 per ounce for the first time, rising 2.4% in the previous trading day, marking the largest single-day increase in over a month. Traders are betting that the Federal Reserve will cut interest rates again next year, which will be beneficial for precious metals in a low-interest rate environment. Over the past week, as geopolitical tensions have intensified, especially in Venezuela, the safe-haven appeal of gold has strengthened even further. The U.S. has intercepted oil tankers, increasing pressure on Venezuelan President Nicolas Maduro's government. Gold prices have risen by 70% this year, primarily due to increased purchases by central banks around the world and a significant inflow of funds into gold ETFs. Gold is poised to achieve its best annual performance since 1979. Data from the World Gold Council shows that the total holdings of gold ETFs have increased every month this year except for May.