Gold tops US$1,400 on weak USA dollar and geopolitical, economic worries

Gold tops US$1,400 on weak USA dollar and geopolitical, economic worries

Before this surge, Gold futures were as high as $1,415.40 per ounce.

Spot gold was up 0.1 per cent at $1,388.60 per ounce at 0958 GMT, after earlier hitting its highest since September 2013 at $1,410.78.

Spot gold (XAU) traded at $1,411.36 per ounce late on Thursday, surpassing the $1,400 level for the first time since 2013, according to data compiled by Bloomberg.

The gold price has risen to the highest level in more than five years, after the US Federal Reserve has indicated its willingness to lower interest rates. Currently, futures are trading at $1,401.6.

Following the Fed meeting on Wednesday, where the US central bank left interest rates unchanged but opened the door for a possible rate cut in the future, the 10-year Treasury yield also slipped below 2% for the first time since November 2016 - breaching an important psychological level.

Demand for safe-haven assets is still elevated because of ongoing geopolitical uncertainties, said founder of The Sevens Report Tom Essaye.

With expectations for the U.S.

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Lower interest rates make the dollar less attractive told hold, which pushes the price of gold higher in relative terms.

Another factor responsible for gold prices surge is escalating tensions between the US and Iran as Washington blamed Iran for show downing the country's spy drone on Thursday. Bullion rates have jumped more than 5% since the US Federal Reserve on Wednesday hinted interest rate cuts were possible later this year, as it responded to increased economic uncertainty and tepid inflation.

Gold futures also saw strong gains, rising 2.9% to $1,387.30 per ounce.

US President Donald Trump on Thursday approved but then scrapped strikes against Iranian targets, The New York Times reported.

And as questions linger about how much this epic market rally - now more than ten years long - can last, investors may continue to look at gold as a way to protect themselves in case stocks fall sharply.

As for other precious metals, silver for July delivery was up 53.4 cents, or 3.57 percent, to settle at 15.492 dollars per ounce.

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