Gold prices reached a new peak on Wednesday, marking the fourth consecutive session of record highs.

This surge is driven by escalating tensions in the Middle East, anticipation of interest rate cuts in the U.S., and persistent inflation, making gold more appealing to investors.

Spot gold showed a 0.1% increase, reaching $2,283.07 per ounce, following an earlier peak of $2,288.09. U.S. gold futures rose by 0.9% to $2,303.50.

Two Federal Reserve policymakers expressed their belief on Tuesday that three interest rate cuts in the U.S. this year would be “reasonable,” despite recent robust economic indicators stirring skepticism among investors regarding such a move, Mint has reported.

Gold, valued as a hedge against inflation and a haven during periods of uncertainty, has surged over 10% since the beginning of the year due to substantial central bank purchases and increased demand for safe-haven assets.

Written by B.C. Begley