FxNews—On Wednesday, gold surged beyond $2,750 for each ounce, reaching a new high. This increase was driven by its reputation as a reliable investment during times of high political tension and ongoing global economic concerns.
The below XAU/USD 4-hour price chart demonstrates the price, support, and resistance levels.
Investors Watch for Middle East Conflict Risks
Investors kept a close eye on peace efforts in the Middle East, particularly concerned about the possibility of wider conflicts in the area as hostilities continue between Israel, Gaza, and Lebanon.
The upcoming U.S. presidential election has also contributed to driving people toward these secure investments, with the candidates currently neck and neck.
Gold Demand Rises as Central Banks Cut Rates
Furthermore, the demand for gold was influenced by recent actions from the world’s leading central banks to reduce interest rates, including those by the People’s Bank of China and the European Central Bank.
At the same time, following recent positive economic reports, expectations for sharp interest rate increases by the U.S. Federal Reserve have decreased.